Adequate availability of credit on time is an important requirement for the rural people, particularly under conditions of scarcity of resources and uncertainty. Convenient and safes-saving facilities are perhaps even more important to smooth out the peaks and troughs in incomes and expenditures in the rural arena. Lack of savings facilities also force families to rely on inefficient, inconvenient and costly alternatives. Agricultural credit can be a solution for this perspective. In Bangladesh most of the agricultural credits are the small-scale loans for the poor entrepreneurs. It allows them to access in the lending institutions to borrow fund and start their own business for rural development. Several financial institutions developed several strategies, including provision of small loans to the rural poor without collateral. These loans are repayable in predetermined installments. Borrowers are organized into groups, which reduces the risk of being default. These credits also help disseminating valuable information about the borrowers and their living standards. In Bangladesh mainly nationalized Banks and specialized Banks are currently burdened with classified loans. But the collateral free financing offers a new opportunity to invest their funds with little risk. Previous experiences of financial institution show that small credits have proven feasible of lending to the poor for rural development. Therefore, we can say that if they can engage themselves efficiently, agricultural credit will accelerate the developmental activities in rural areas of Bangladesh.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 1) |
| DOI | 10.11648/j.ijefm.20140201.18 |
| Page(s) | 68-83 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
Agriculture, Credit, Development, Rural, Invest, Banks
| [1] | Shehabuddin, Rahnuma. The Impact of Grameen Bank in Bangladesh. Dhaka: Grameen Bank, 1991. |
| [2] | Wahid, Abu N M. The Grameen Bank:Poverty Relief in Bangladesh. USA: Westview Press, 1993. |
| [3] | Khandker, Shahidur R. Fighting Poverty with Microcredit: Experience in Bangladesh. The University Press Limited:Dhaka, 1998. |
| [4] | Alam, Nurul, and Sayeeda Bilquis Jahan. "Default Culture in Banking Sector of Bangladesh." Bank Parikrama, Vol. XXIV, No. 1, March, 1999. |
| [5] | Kothari, C. R. Research Methodology, Methods and Techniques, 2nd Edition, Wishwa Prakashan, New Delhi, India. 2001. |
| [6] | Lesikar, Raymond V. and John D. Pettit. Jr., Business Communication Theory and Application, 6th Edition, Richard D. Irwin Inc., USA. 1994. |
| [7] | Hossain, Mahabub. "Institutional Credit for Rural Development Overview of Bangladesh." Journal of Agriculture Economics, Vol. 8, No. 1 (June 1985). |
| [8] | Hashemi, Syed M, Sidney Schuler and AnnRiley. "Rural Credit Programs and Women's Empowerment in Bangladesh". World Development, April 1996. |
| [9] | Choudhuri, A.H.M. Nurul, Islam, et al. "Restructuring Rural Banking in Bangladesh", Bank Parikrama, March-June, 1994. |
| [10] | Bangladesh Bank. Annual Report. Dhaka, Bangladesh. 2000-2004 & 2010-2011 |
| [11] | Bangladesh Krishi Bank, Annual Report. Dhaka, Bangladesh. 1998-2003 |
| [12] | Grameen Bank, Annual Report. Dhaka, Bangladesh. 1998-2003 |
| [13] | Credit and Development Forum, Microfinance Statistics. Volume 16, December 2011. |
| [14] | Ministry of Finance, Activities of Banks and Financial Institutions. Dhaka, Bangladesh 2010-2011. |
| [15] | Ministry of Finance, Bangladesh Economic Review. Dhaka, Bangladesh. 2004. |
APA Style
Md. Ariful Islam, Md. Rayhan Islam, Mahmudul Hasan Siddiqui, Luthful Karim. (2014). Importance of Agricultural Credit for Rural Development of Bangladesh: A descriptive Approach. International Journal of Economics, Finance and Management Sciences, 2(1), 68-83. https://doi.org/10.11648/j.ijefm.20140201.18
ACS Style
Md. Ariful Islam; Md. Rayhan Islam; Mahmudul Hasan Siddiqui; Luthful Karim. Importance of Agricultural Credit for Rural Development of Bangladesh: A descriptive Approach. Int. J. Econ. Finance Manag. Sci. 2014, 2(1), 68-83. doi: 10.11648/j.ijefm.20140201.18
AMA Style
Md. Ariful Islam, Md. Rayhan Islam, Mahmudul Hasan Siddiqui, Luthful Karim. Importance of Agricultural Credit for Rural Development of Bangladesh: A descriptive Approach. Int J Econ Finance Manag Sci. 2014;2(1):68-83. doi: 10.11648/j.ijefm.20140201.18
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ijefm.20140201.18,
author = {Md. Ariful Islam and Md. Rayhan Islam and Mahmudul Hasan Siddiqui and Luthful Karim},
title = {Importance of Agricultural Credit for Rural Development of Bangladesh: A descriptive Approach},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {2},
number = {1},
pages = {68-83},
doi = {10.11648/j.ijefm.20140201.18},
url = {https://doi.org/10.11648/j.ijefm.20140201.18},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140201.18},
abstract = {Adequate availability of credit on time is an important requirement for the rural people, particularly under conditions of scarcity of resources and uncertainty. Convenient and safes-saving facilities are perhaps even more important to smooth out the peaks and troughs in incomes and expenditures in the rural arena. Lack of savings facilities also force families to rely on inefficient, inconvenient and costly alternatives. Agricultural credit can be a solution for this perspective. In Bangladesh most of the agricultural credits are the small-scale loans for the poor entrepreneurs. It allows them to access in the lending institutions to borrow fund and start their own business for rural development. Several financial institutions developed several strategies, including provision of small loans to the rural poor without collateral. These loans are repayable in predetermined installments. Borrowers are organized into groups, which reduces the risk of being default. These credits also help disseminating valuable information about the borrowers and their living standards. In Bangladesh mainly nationalized Banks and specialized Banks are currently burdened with classified loans. But the collateral free financing offers a new opportunity to invest their funds with little risk. Previous experiences of financial institution show that small credits have proven feasible of lending to the poor for rural development. Therefore, we can say that if they can engage themselves efficiently, agricultural credit will accelerate the developmental activities in rural areas of Bangladesh.},
year = {2014}
}
TY - JOUR T1 - Importance of Agricultural Credit for Rural Development of Bangladesh: A descriptive Approach AU - Md. Ariful Islam AU - Md. Rayhan Islam AU - Mahmudul Hasan Siddiqui AU - Luthful Karim Y1 - 2014/01/30 PY - 2014 N1 - https://doi.org/10.11648/j.ijefm.20140201.18 DO - 10.11648/j.ijefm.20140201.18 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 68 EP - 83 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20140201.18 AB - Adequate availability of credit on time is an important requirement for the rural people, particularly under conditions of scarcity of resources and uncertainty. Convenient and safes-saving facilities are perhaps even more important to smooth out the peaks and troughs in incomes and expenditures in the rural arena. Lack of savings facilities also force families to rely on inefficient, inconvenient and costly alternatives. Agricultural credit can be a solution for this perspective. In Bangladesh most of the agricultural credits are the small-scale loans for the poor entrepreneurs. It allows them to access in the lending institutions to borrow fund and start their own business for rural development. Several financial institutions developed several strategies, including provision of small loans to the rural poor without collateral. These loans are repayable in predetermined installments. Borrowers are organized into groups, which reduces the risk of being default. These credits also help disseminating valuable information about the borrowers and their living standards. In Bangladesh mainly nationalized Banks and specialized Banks are currently burdened with classified loans. But the collateral free financing offers a new opportunity to invest their funds with little risk. Previous experiences of financial institution show that small credits have proven feasible of lending to the poor for rural development. Therefore, we can say that if they can engage themselves efficiently, agricultural credit will accelerate the developmental activities in rural areas of Bangladesh. VL - 2 IS - 1 ER -
Email: