Micro Environment

Chapter 1 Introduction 1. 1 Problem Backg lap there atomic list 18 more(prenominal) or less(prenominal) three billion batch, fr natural actional of the worlds population, living on the income of less than two dollars a day. Among these deplor adequate to(p) communities, unity child in quint does non weather to see his or her fifth birthday. One ponder in 2006 showed that the ratio of the income between the 5% richest and 5% distressingest of the population is 74 to 1 as compared to the ratio in 1960, which was 30 to 12.To put up international information, the United Nations Organization (UNO) announce the millennium incurment goals,aimed to eradicate meagerness by 2015. In this regard, little pay is the form of fiscal emergence that has its primary aim to lenify the pauperization. Governments, donors and NGOs around the world responded enthusiastic exclusivelyy with plans and promised to figure divulge together towards the realization of these goals.In t he recognition of microfinance, the UNO storied the grade 2005 as a year of micro- mention, as a result this finance putz is perceived worldwide as a very(prenominal) offspringive stand for a contactst hunger and privation, gener solely(a)y in underdeveloped countries. littlefinance is a address methodology, which employs effective confirmative substitute for short-change-term and on the job(p) gravid contributes to micro-entrepreneurs. The level of a rustics privation has long been linked with measures of its economical discip note of hand. Little traination was given to the hearty re composition of the natural resources (e. empowerment vs. noncitizen ation of concourse, sustainable give vs. depletion of the environment). The economies with positive egress rate of Gross National mathematical merchandise (GNP) were measured by their exiguity mitigation. This gratitude evince on the achievement of wealth and applied science as a highway for development and assumed that remediated lives for every last(predicate) would be the natural consequence. microfinance is non a sunrise(prenominal) development. or so developed countries as well up as exploitation countries factoricularly in Asia hav e a long chronicle of microfinance.During the octadeenth and nineteenth centimeuries, in look of European countries, microfinance evolved as a lawsuit of the in statuesque banking for the abject. Informal finance and self-help hurl been at the constituteation of microfinance in Europe. The early explanation of microfinance in Ire arrive end be traced post to 18th century. It is a history of how self-help led to fiscal innovation, legal bread and butter and conductive regulation, and creating a mass microfinance work. further the unpleasant regulations prompted by commercial bankin g brought it d induce.The so-called Irish give pecuniary resource appeared in early eighteenth as charities, initially financed from donated res ources and pop the questioning interest put down contributes. They were soon replaced by fiscal mediation between savers and borrowers. imparts were granted on shortterm basis and instalments were scheduled on weekly basis. To enforce the generatement, monitoring border was employ. In Latin America and second Asia, the microfinance has grown out of experiments, but the known start was in Bangladesh in 1976, pursuance a wide mobilize famine in 1974 and a hard-fought war of e missionary post in 1971.Its stock certificate can be traced back to 1976, when Muhammad Yunus mint up the Grameen vernacular, as an experiment, on the outskirts of Chittagong University campus in the village of Jobra. The ambition of Grameen fix came to Muhammad Yunus mind when he contribute the equiva contribute of $26 to $42 to put-upon women who were workings as bamboo furniture aimr. He saw that, they were enthusiastic about it and stipendiary back their brings on meter.In the beginning , Muhammad Yunus foc utilize the activities of Grameen verify principal(prenominal)ly on nest egg and miniscule imparts, and decided to put the interest rank high enou gh to cover the expenses. Finally just importantly, he asked borrowers to organize themselves in solidarity groups of quintet commonwealth (who adopt to fall in two(prenominal) week in order to repay their brings and to ex change their opinions). Inspired by the success of his experiment, he decided to spread out this body to oppo order villages in Bangladesh. In 1983, this institution became a bank.Today it operates in al approximately 36000 villages and serves more than 3500000 multitude. On thirteenth October 2006, the Nobel Peace Prize went to Muhammad Yunus and Gramen entrust, the microfinance institution he founded 30 years ago. Muhammad Yunus has shown himself to be a leader who has managed to trans juvenile hallucinations into practical action for the get of sensation million millions of plurality, non only in Bangladesh, but as well as in mevery an(prenominal) other countries. Loans to light people without any financial security had appeared to be an inconceivable idea. 2 Eventually we are in a situation, in which Muhammad Yunus, the founder of Grameen Bank, tells us the goal spread of micro-credit and finance, which give us the hope, may be our great-grandchildren allow for go to museums to see what scantness was handle. This report is about microfinance and its contribution to the procession and poverty reliever for millions of the uglyest people of Bangladesh. Micro finance has a huge affect on the lives of millions of scummy people..Numerous scholars and NGOs carry been working to take microfinance indoors the reach of poor people, who are unflurried not benefited by the conventional financial system. It was believed that microfinance is not important for all people but most groups can benefit from this idea. In this report, we try to pre sent evince of the important contributions made by microfinance in the eradication of poverty by change magnitude the income generating activities, empowerment of poor people to advance development emoluments much(prenominal)(prenominal) as health and upbringing, and diminution in vulner king. 1. 2 Problem StatementIn the light of problem, background leads to the followers problem statement, daze of Microcredit on poverty backup man of the poor people in Bangladesh 1. 3 Objectives of the tuition To be meaningful, every work must hurl to hypothesize the marks of the study. In the light of the topic of the report, the fair game of this study is to show how microcredit works, by utilize group lending methodology for bring down poverty and how it effects the living measuring (income, saving access to health and education, and so on ) of the poor people in Bangladesh. 1. 4 Methodology of the studyData & information are in the rootage place collected from substitute sources. We have apply several books, seek literatures, articles, journals and report, as secondary sources for our study. Internet sources were also utilise as a secondary source for our report. Since the lucre sources are less received, we have especial(a) the use of those sources to the web pages of prominent organizations manage Grameen Bank. Most of the sources, we tried to use, are reliable and are acceptable almost everywhere. Nevertheless, from them we had to guide the most appropriate literature for our report.For this reason, we had to go d one(a) numerous references related to this topic, to interpret the suitable materials. Besides these, Google Scholars were also utilise to find the suitable research material. The keywords utilise when searching for scientific articles and literatures were microcredit, microcredit and Bangladesh, poverty reduction and microcredit, Muhammad Yunus and microcredit,living standards and microcredit and so on 1. 5 Limitations Du e to dearth of time, the accuracy of information may not have been completely flawless. 1. Definitions and Key Concepts Microcredit It is a component of microfinance and is the extension of keen adds to entrepreneurs, who are too poor to qualify for traditionalistic bank contributes. Especially in developing countries, micro-credit enables very poor people to shut away in self-employment tolerates that generate income, thus allowing them to improve the standard of living for themselves and their families. pauperisation privation is a condition in which a soulfulness of a commumity is deprived of the grassroots essentials and necessities for a minimum standard of living.Since poverty is understood in many senses, the elementary essentials may be material resources such as food, safe dringking water and shelter, or they may be amicable resources such as access to information, education, health palm, social status, political power, or the opportunity to develop meaningfu l connections with other people in society. According to the field Banks (1980 ) comment of poverty, condition of animateness so characterized by malnutrition, illiteracy, and disease as to be beneath any reasonable definition of human decency. Extreme pauperization/ living PovertyExtreme poverty is the most severe state of poverty, where people can not digest their elementary involve for survival, such as food, water, clothing, shelter, sanitation, education and health care. Eradication of extremum poverty and hunger by 2015 is a Millennium developing Goal set by UNO. To determine the number of organic poor people around the world, the arena Bank characterizes extreme poverty as living on the day- later-day income of US $1 or less. It has been estimated that around 1. 1 billion people currently live under these conditions. Moderate povertyIt indicates the condition where people earns about $ 1 to $2 a day, which enables categorys to just barely meet their basic needs, b ut they still have go for many of the other things education, health care that many of us take for granted. recounting Poverty It government agency that a residehold has an income below the national average income. Micro finance Institutions (MFIs) A microfinance institution is an or ganization, engaged in extending micro credit loans and other financial services to poor borrowers for income generating and self-employment activities.An MFI is commonly not a classify of the formal banking industry or government. It is usually referred to as a NGO (Non-Government Organization). Chapter 2 Theoritical Framework 2. 1 What is microcredit? Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not considered bankable. These individuals neediness collateral, steady employment and a falsifiable credit history and in that respectfore cannot meet even the most minimal qualifications to gain access to traditional credit.Microcredit is a part of microfinance, which is the preparedness of a wider range of financial services to the very poor. 2. 2 Features of microcredit sur casing loans are micro, or very small in size channelize users micro entrepreneurs and low-income households Utilization the use of notes for income generation, and opening move development, but also for community of interests use (health/education) and so on Terms and conditions most footing and conditions for microcredit loans are flexible and easy to understand, and suited to the local conditions of the community. Usually micro-credit is provided to a item geographical area or community. Micro-credit funds are whatevertimes initiated in response to the needs of a particular group. round loan circles and lending institutions require participants to name ongoing business training and mentoring political platforms, which is not the case with traditional debt lending. Micro-credit i s recognized as having ontogeny risk and is treated as a separate class of product by lenders. Its mission is to help the poor families to help themselves to overcome poverty. It is targeted to the poor, particularly poor women. 2. 3Classification of microcredit I. Traditional informal microcredit (such as, billslenders credit, pawn shops, loans from friends and relatives, consumer credit in informal market, etc. ) II. Microcredit establish on traditional informal groups (such as, tontin, su su, ROSCA, etc. ) III. Activity- base microcredit through conventional or work banks (such as, agricultural credit, livestock credit, fisheries credit, handloom credit, etc. ) IV. awkward credit through specialised banks. V. reconciling microcredit (cooperative credit, credit union, savings and loan associations, savings banks, etc. VI. Consumer microcredit. VII. Bank-NGO partnership ground microcredit. VIII. Grameen display case microcredit or Grameencredit. IX. early(a) types of NGO m icrocredit. X. Other types of non-NGO non-collateralized microcredit. Chapter 3 Major MFIs and their role in Bangladesh Back during late 1970s, when the Jobra experiment was afoot(predicate) under Professor M. Yunus, the Dheki Rin Prokolpa was initiated by the Bangladesh Bank in collaboration with the Swanirvar Bangladesh, and several other pilot schemes were initiated by a fistful of the NGOs who were active then.At that time, it was difficult then to apprehend that these initiatives would lead to a major micro-credit movement, which would make Bangladesh known to the rest of the world. Even during the 1980s, in spite of Grameen Banks success, the main discourse amongst development practitioners in Bangladesh centred on the desirability of micro-credit platform as fence to concientization. By 1990, unhindered experimentation in the fields led to a politic resolution of the debate and the country go through a massive expansion of micro-finance activities during the 1990s.Th is is borne out by the figures on the time path of MFI expansion (see Figure 1), pic Many studies and surveys have been carried out by different agencies regarding the working of MFIs and their doctor on the poor people in Bangladesh. The agencies like Bangladesh Institute of Development Studies and World Bank have found strong evidence that functioning of MFIs have helped the people in meeting their daily needs and at the same time building their assets.It has been stated in The World Bank Economic Review that microfinance has not only helped people to develop in their material capital but also in the human capital, by cave in access to health care and education system, and general awareness among the people about their rights and duties towards society. However, there are numerous MFIs working in Bangladesh at present so it is almost impossible to mention all of them. Therefore, we have chosen four of the most important ones and try to give the overview of them. 3. Bangladesh o ut dry landish Advancement Committee (BRAC) With a vision of a just, enlightened, healthy and democratic Bangladesh quit from hunger, poverty, environmental degrad ation and all forms of exploitation based on age, sex, religion and ethnicity, BRAC started as an almost entirely donor funded, small-scale assuagement and rehabilitation project to help the country overcome the devastation and trauma of the carrier bag War. Today, BRAC has emerged as an independent, virtually self-financed paradigm in sustainable human development with its motto ?Alleviation of poverty and empowerment of the poor. It is the tremendousst in the world employing 97,192 people, with the twin objectives of poverty succor and empowerment of the poor. Through experiential learning, BRAC immediately provides and protects livelihoods of around 100 million people in Bangladesh. Diagnosing poverty in human terms and recognizing its multidimensional nature, BRAC approaches poverty alleviation with a holistic approach. BRACs outreach covers all 64 districts of the country. 3. 1. Microfinance Programs of BRAC, at a contemplate (Source BRAC Annual report 2005) Inception of micro finance programme 1974 Programme reporting Districts 64,Thanas507 gist No of Area/ discriminate Offices 1,381 gist No of village Organizations 160,197 essential No of Members 4,837,099 Percentage of Women Members 98% heavy(p) Borrowers 4,159,793 Cumulative Loan Disbursement 165,794 million (US $3,094) Members Savings 9,159 million (US 141 million) sightly Loan Size 9,452(US $145) Repayment regulate 99. 49% 3. 2 Grameen Bank The history of origin of Grameen Bank can be traced back to 1976, when Professor Muhammad Yunus, head of the rural economic science Program at the University of Chittagong, launched an action research project to examine the possibility of shrewd a credit delivery system to provide banking services targeted at the cracker-barrel poor.The initial activities started fr om Jobra village (adjacent to Chittagong University) and some in th e neighboring villages in the following years. Later in 1979, with the sponsorship of underlying bank and support of the nationalized commercial banks, the project was extended to Tangail, a district trades union of Dhaka. Later the Grameen Bank became an autonomous organization through the government legislation of October 1983. Today, Grameen Bank is mainly owned by the people whom it serves and they own 90% of its shares and remaining 10 % are owned by the government. 3. 2. 1 Microfinance Programs of Grameen bank, at a glance (Source Gra meen Bank annual report 2007) upshots of Members 7. 5 million Percent of Women Members 97% egress of Canters 99,502 flesh of Villages cover 59,912 Number of Branches 2,499 Number of Areas 81,334 villages Number of Zones 21 Cumulative make sense Disbursed since Inception 256,497. 40 (Million Taka) Cumulative Disbursed during 2005 39,183. 49 (Million Taka) Amount of Loan outstanding 27,970. 31 (Million Taka) Members 20,138. 7 (Million Taka) Non-Members 11,521. 19 (Million Taka) Portfolio Growth Rate 39. 66% 3. 3 Association for amicable Advancement (ASA) ASA in Bengali means HOPE. ASA is a non-governmental organization based in Bangladesh, which provides micro-credit financing. It was established in 1978 by Shafiqual Haque Choudhury who is also the current chairman. Its functioning is basedon the institutional support system.Innovations and simplifications of staff training, monitoring and bookkeeping are the three areas responsible for ASAs ability to effectively manage established units and keep abreast bold step-up initiatives simultaneously. This makes the operations fluid and efficient. This makes it guileless and easy to operate both(prenominal) for the organization and for the clients, without the unnecessary delays of bureaucracy and red-tape. Its mission is to reduce poverty and improve the graphic symbol of life of the poor through the provision of qualitative and responsive micro finance services in an innovative and sustainable way. ASA offers a roaring substitute(a) microfinance model to that of the Grameen bank.ASA combines low cost operations and high growth to fuel its success. ASA continues to blameless the role of financial intermediation by developing a kind of savings p roducts that are quite successful at generating the necessary funds from local sources. The experiences of ASAs managerial dynamism and replication of its simplex model have much to offer the diverse microfinance sector as it accommodates claim for quality Financial services by the poor masses. ASA is confident that a financially viable microfinance sector that provides competitive financial services to its customers will be able to expand outreach at a ill-treat similar to its own. 3. 3. Microfinance Programs of ASA, at a Glance (Source ASA Annual makeup 2005) Inception of micro finance programme 1978 Progr amme reportage Evenly distributed over the country keep down No of Area/Branch Offices 2,291 Total No of village Organizations or groups 178,904 Total No of Members 5. 99 millions Percentage of Women Members non sex coloured Outstanding Borrowers 4. 8 millions C umulative Loan Disbursement 33,082 million (Taka) Total Members Savings 3,036 million (Taka) Average Loan Size Taka 7,129 Avg. savings balance by members Taka 748 3. 4 Proshika Immediately after the WAR OF LIBERATION in 1971, a group of young men, who could realize the want of the conventional development practices, began to plan development activities with an alternative appr oach. With an objective to contribute to build the war-ravaged country, they formed Proshika Manobik Unnayan Kendra (Proshika Centre for Human Development).The development process of PROSHIKA, one of the largest NGOs of Ban gladesh, started in a some villages of Dhaka and Comilla districts in 1975, although the organization formally took its first clapperclaw in 1976. Proshika is an acronym of three Bangla words, proshikkhan (training), shikkha (education) and kaj (action). PROSHIKA envisages a society, which is economically productive and equitable, socially just, environmentally sound, and actually democratic. The main mission of PROSHIKA is to conduct an extensive, intensive, and participatory process of sustainable development through empowerment of the poor.Through empowerment, the poor are or ganized and made aware of the real causes of their impoverishment, a leadership is developed among them, their material resources are mobilized, income and employment is increased, and capacities are developed to get it on with natural disasters. Empowerment makes th e poor functionally literate, enables them to take break up care of their health, to get involved in environmental protection and regeneration, get elected in local government bodies and community institutions, and provides the poor with better acces s to globe and common property resources. 3. 4. 1 Microfinance Programs of PROSHIKA, at a Glance ((Source PROSHIKA Annual comprehend 2005) Numbers of Members 2. 7 millions Percent of Women Members close to 60% Number of Groups 148,039 Number of Villages cover 23559 Number of Slums 2102 Number of Households 2. 3 millions Number of primary Groups 148,039 Cumulative Disbursed during 2005 Taka 31,870 millions Number of knowledge Centres Set Up So furthermost 53,616 Persons graduated with technical skills 1. 11 millions Chapter 4 Impact of Microcredit Program on Poverty Alleviation 4. What the microcredit clients do with the loan capital In one of the countrys large formal MFIs, it was found that about sixty eight per cent of the clients employ 54% of their do loans for small trades. A hardly a(prenominal) clients utilize 64% of the loan funds for buy homestead and cropland. A small number of clients apply 67% of the loans to build unsanded houses. rough washed-out 15% of the fundamental loan for medical examination treatment of their relatives and themselves. most spent 19% of the primitive loan money for economic consumption purposes. A a a few(prenominal)(prenominal) clients utilise 29% of loan money for maneuvering their relatives abroad for jobs. A little number of clients apply 18% of their loan for major repairing of their dwelling houses.A handful of clients apply 42% of the loan for purchase tv sets, furniture and gold ornaments, musical composition others employ the loan money in buying rickshaws, livestock and lending to others in a modicum scale . In other large non-governmental organisation (NGO)-MFI, it was spotted that cubic decimeter per cent of the clients used 95% of the full(a) loan money in trading businesses like vegetables, grocery, fish, and betel leaves, etc. A few clients used 40% of the loan money in repaying occasional borrowed debts. few clients used 35% in agricultural farming. Some used 37% of the total loan for buying livestock for rearing. A few clients used 41% loan money for redeeming mortgaged cropland.Some clients used 61% of the loan money for sending relatives abroad. over again some used 34% of the loan money for meeting the debts from moneylenders. Some clients used 15% of the total loans in repaying loan installments of other NGOs. Some clients used 17% of the loan for medical treatment. Some used 100% loan for house construction, while others used the loans for buying land, rickshaw vans and consumption purposes. Yet again in another large NGO-MFI in the country, about fifty per cent clients were noticed using 66% of the total loan in cart track their businesses. Several clients used 43% of the total loan for marriage ceremony of their family members.A few clients used 38% of the loan for house construction and repairing. Some used 32% of the total loans in repaying loans of the local moneylenders. A few clients used 59% of the loan for various l itigation purposes. Some clients spent 41% in food consumption. Some clients used 67% loan for twist purposes. Others used the loans for medical treatment, buying livestock, cropland, taking others land for cultivation and repaying loan installments of other NGOs. In a mid-level MFI operating in the urban areas, cent per cent clients used 86% of the total loan in various types of businesses that include grocery, cattle hide, computer composing, photocopy service, commercial phone service, sari selling, etc.Some clients used 84% of the total loan for house construction. A few clients used 81% of the total loan in buying land in the villages where they hailed from. In a pretty tiny NGO-MFI, some clients were found using 74% of the total loans for buying fishing equipment like nets and boats, etc. Some clients used 46% of the loan for buying livestock. A few used 74% of the loans as business capital. Some kept 52% of the loans as savings in the commercial banks, while others used t he loan money for repairing houses and meeting medical costs. 4. 2 Impact of Microcredit The major objective of microcredit (MC) is to create income among poor households and thereby lenify poverty.In this respect the question can be asked at two levels, first, whether MC leads to an improvement in income and second whether the increase in income is sufficient to lift them above the poverty level. There is also a ternary aspect related to the second that is whether poverty alleviation takes place on a sustained basis. Though most impact assessment studies examine the impact of MC on income, the analyses concentrated on mainly the first question. It should be mentioned that most studies consider the total impact on growth of income and do not examine whether a redistribution of credit fund has a redistributive impact on poverty and income of households 4. 2. 1 Findings of PKSF ME hire by BIDSPalli Karma-Sahayak Foundation (PKSF) commissioned a longitudinal Monitoring and Evaluatio n count (MES) which was conducted by the Bangladesh Institute of Development Studies (BIDS). Started in 1997, the studies were completed in 2001. The study covered 3026 sample households spread over 91 villages located in 13 of PKSF POs functional areas. A census was administered in late 1997, covering 19151 households in 91 villages. The first and the second round surveys under the study were administered in 1998 and 1999 and the third and final round survey was conducted in 2000. Some findings on the impacts of microcredit as presented here are gleaned from the reports and written document prepared by BIDS. The summary of the PKSF-ME tuition by BIDS is shown in the set back below- Table Impacts of Microfinance (compared to non-participants) Broad Category Indicatiors Type of remove Cause of Change Economic Impact Income + Self employment activities Food aegis + Greater access to cultivable land through the rental market profit (land poor) + Transport and other non-a gril activities sup. by MC Employment (land poor) + better access to the land rental market Wage emoloyment in non-ag. sector Assets (land poor) + av. ow land size than non-participants larger operational holding impact of MF (poultry livestock, bi-cycles, rickshaw/van) Social and other statelyness and contraceptive use + program federation development impacts female methods dominate wellness and Nutrition + program placement effect Sanitation and drinking water + program participation Literacy and school enrollment + program participation of children Social mobility ? do not vary significantly Women articipation and HH + participation in a MC program eudaimonia increasing womens income 4. 2. 2 beat the Impact of Microfinance Grameen Bank has been tracking the betterment of its clients in achieving all ten indicators since 1997, and reports that 55 pct of its established members (Grameen annually surveys all clients who have been in t he program more than five years) had crossed the poverty line by the end of 2004 pic (Source CIA World Factbook http//www. cia. gov/cia/publications/factbook/geos/bg. tml) This is an impressive achievement, and exactly the type of information that one might hope any MFI would be tracking. Though it might seem imperious to determine that achieving all ten indicators constitutes movement out of poverty, in fact all poverty lines are to some mark arbitrary, and they are meant to quantify whether or not families are meeting basic needssuch as those represented in the Ten Indicators. endureing that 55 part of established Grameen clients never go hungry, have access to safe drinking water, and send their children to school is important to Grameen. Table 1 Poverty rates among Grameen Bank members vs. Non-participants, 1984-85 Grameen members Target non participants All households Grameen equation Grameen Comparison villages villages villages villages sanely poor (percent) 61. 0 83. 7 80. 4 61. 5 76. 3 Extremely poor (percent) 48. 0 76 74. 4 47. 1 54. 6 Table 2 Poverty rates among Grameen Bank members vs. Non-participants, 1996-97 All households Grameen Comparison villages villages Moderately poor (percent) 18 57. 5 Extremely poor (percent) 15 54. 5 Table 1 and 2 bring up that Grameen Bank members are substantially less poor than non-members, and that Grameen Banks activities touch the poverty levels of entire villages. The centerpiece of the findings of a survey is that every additional taka lent to a woman adds an additional 0. 18 taka to annual household expenditurean 18 percent return to income from acquire. Notably, the returns to male borrowing were considerably lower, only 11 percent.The authorship and the book reported a variety of wider impacts, including A one percent increase in credit to Grameen women increased the probability of girls school enrollment by 1. 86 percentage points. A 10 percent increase in credit provided to wom en increased the arm circumference of girls by 6 percent. A one percent increase in credit to women increased the height-for-age of both boys by 1. 42 percent and girls by 1. 16 percent. Microcredit is not merely an instrument for credit extension to the poor borrowers. It is a movement to emancipate the poor to extenuate their poverty, improve their quality of life, and build their cogency and awareness and to integrate them economically and socially into the mainstream of the economy.The benefits of microcredit go beyond the quantifiable ones, there are other benefits, which are not seen, but are evident in the socio-economic transformation of rural Bangladesh. Chapter 5 remnant We have come to the conclusions that there is a noticeable and positive impact of microcredit activities on the living standards, empowerment and poverty alleviation among the poor people in the society. If one can help, a poor person to stand on his own that cannot only bring about a regeneration in their lives but also in the society. The dream of a healthy and amend society with no discrimination and biased can be achieved through this simple thought, the dream which seems to be coming accredited and becoming practical.The simple vision of one man, Muhammad Yunus has taken the shape of the revolution and has shown the scape of hope in the path of life to every human, irrespective of his background or status or position. The hope of a life that no one will sleep hungry, no one will die due to lack of medication, our children can read and write on their own and everyone will be the pillar of the society. ground for further research The current study did not consider the reasons of motivation to marrow the microfinance program. Another area that has not been investigated is the difficulties that the borrowers face to repay the loan. These areas deserve to be canvass by future researchers in the field. There is also another field, which is neglected in our study that the supply quip of MFIs.Actually, to what period the MFIs are capable to deliver their service to the poor people. Further research could be conducted in this area and for finding the reasons for the gap between demand and supply in terms of microfinance services. References www. google. com Grameen Bank functionary website (www. grameen-info. org/) ASA official website (www. asabd. org) BRAC official website (www. brac. net) PROSHIKA official web site (www. proshika. o rg/) Rahman, R. I. , 1994, Impact of Credit for the Rural suffering An Evaluation of Palli Karma Sahayak Foundations Credit Program, Report Nr 1207, BIDS, Dhaka. (found on the internet)The World Bank, 1996, Staff idea Report, Bangladesh Poverty Alleviation Micro-finance Report 1, southward Asia Region. (Found on the internet) caravansarydker, S. R, 1998, Micro-credit Programmes Evaluation - A circumstantial Review, IDS Bulletin of International Development Studies 29 (4), 11-19. (Found on the internet) Measuring t he Impact of Micro? nance Taking Stock of What We Know (December 2005) by Nathanael Goldberg. (Found on the internet) Impact of Microfinance on Living Standards,Empowerment and Poverty Alleviation of Poor People A Case necessitate on Microfinance in the Chittagong District of Bangladesh. -by Mohammad Arifujjaman Khan and Mohammed Anisur Rahaman.