The Goldin Institute trained a team of twelve community researchers in oral testimony techniques.
The research team conducted over 150 interviews with peer microcredit recipients in Arampur.
This village of 1500 households now has eight microcredit banks leading to an oversaturated debt market.
The majority of households surveyed now hold three or more microcredit loans and feel entrapped by debt.
Oversaturation of microcredit banks has led to dependency on microcredit for consumption and other non-entrepreneurial purposes in rural Bangladesh. Many household reported holding upwards of four loans at a time. In this overcrowded debt-market, it is common to cover old debts by taking out new loans from different sources (and not infrequently from the same sources), often with the encouragement of field officers.
Listening to Microcredit Recipients
Video of the “Listening to the Experiences of Microcredit Recipients” roundtable discussion hosted on June 21, 2010 in Dhaka, Bangladesh. This is the first ever conversation between microcredit lenders, regulators and recipients in Bangaldesh. The meeting was facilitated by our partner Ms. Khushi Kabir, Coordinator of Nijera Kori.
University of Texas
Senior Advisor, Community Driven Research
Project Partner, Bangladesh
How to Improve Microcredit?
High repayment rates prove that microcredit works for banks but tells us nothing about its efficacy for borrowers.
Without access to complementary services, recipients are often forced to use their loans to address immediate needs.
Listen to Recipients
Listening to the insights of recipients ensures that microcredit empowers, rather than exploits, borrowers.