Multiple Borrowing through Microcredit and Its Impact on Loan Repayment: Study in Bangladesh

Abstract

This descriptive research on the microcredit industry of Bangladesh is an attempt to explore the multiple borrowing scenarios and its impact, especially on the loan repayments of the borrowers. This study is mainly a primary data-based descriptive research based on 150 sample respondents from Khulna region of Bangladesh. Convenient sampling method was used and one structured questionnaire had been used to collect response of the respondents. Data was collected through face to face interview. A noticeable portion of the microcredit borrowers (71% of the survey respondents) are somehow involved in multiple borrowing. The main reason for multiple borrowing is the small size of loans from MFIs. About 69% of the respondents admit of being late somehow in their loan repayments. People with multiple loans are having more trouble in timely repayments.

Keywords: Micro-credit, MFIs, Bangladesh, Multiple borrowings