Islami Bank Bangladesh Limited has launched Islamic Microfinance program in 1995 to uplift the overall socioeconomic plight of the rural poor in Bangladesh. Presently, the scheme is being implemented through 116 branches in 5,622 villages under 61 districts. Some 0.3 million group members including 0.2 million investment clients of which 94 percent are female are involved in this scheme. This study assessed the effect of micro-investment on household income, food expenditure and total expenditure and found that significant changes took place in all those factors. This study also showed that household income had increased significantly due to the influence of invested money. Other factors like clients age, number of family members, total land size and clients ethics and moral had positive and significant influence on household income. Study concluded that the Islamic micro-investment program benefited the clients and clients were successful in bringing positive changes in their lives and has played a significant role in reducing rural poverty. Therefore, the program can be replicated in other rural areas of Bangladesh in order to accelerate economic activities of the of the poor.

Autorentext

Dr. Rahman is an economist persuaded PhD from Imperial College,UK and PGD in Islamic Banking and Insurance from IIBI, UK. He has been working in different national and international research organization since 1987 and now he is the Research Director, IBBL. He has 35 articles,one book and presented 40 papers in different countries across the world.