IMPACT OF POVERTY REDUCTION THROUGH MICRO-CREDIT-A RESEARCH ON BANGLADESH PERSPECTIVE

Microcredit has emerged as an innovative tool for poverty reduction in developing countries, and Bangladesh is often considered a global leader in its adoption. This study explores the impact of microcredit initiatives on poverty reduction in Bangladesh, focusing on how small, unsecured loans empower marginalized people, particularly rural women. Through case studies, field studies, and analysis of secondary data, the study investigates how access to microcredit promotes entrepreneurship, improves household incomes, and enhances social welfare. The results show that microcredit programs, primarily implemented by institutions such as Grameen Bank, BRAC, ASA, and Palli Sanchay Bank, have been successful in reducing poverty by creating income opportunities and promoting selfemployment. Additionally, they also contribute to improvements in health, education, and gender equality. However, it also highlights challenges such as excessive debt, high interest rates, and limited scalability, which can hinder long-term gains. This study emphasizes that while microcredit is not the only solution to poverty, it is an important part of a holistic approach to sustainable development. Bangladesh's experience offers valuable lessons for other countries seeking to replicate successful poverty reduction strategies.