Effectiveness of community based organization (CBO) microcredit programme of concern worldwide: A case study of Bangladesh

This study was conducted to examine the effectiveness of community based organization (CBO) microcredit programmes of ʹConcern Worldwideʹ in selected urban areas of Mymensingh district. The study is concerned with CBO microcredit use, assessing repayment performance, identifying the factors affecting repayment performance and assessing the impact of loan on livelihood improvement of the beneficiaries. Tabular and statistical analyses were applied for achieving the objectives. Overall, 84% of the total loan applied for was received by the respondents. Maximum amount of loan (89%) was received by rickshaw puller during the study period. The respondents used their maximum borrowed money productively. About 96, 94 and 98% of the total borrowed money were utilized purposively by small trading, saloon and rickshaw pulling respondents, respectively. Repayment performance of CBO microcredit programmes was highly satisfactory. Respondentsʹ income and loan receipt amount positively contributed to loan repayment, whereas respondentsʹ age, education, family size and forced saving negatively affected loan repayment. Almost all of the respondents mainly repaid their loan on time with the hope of getting loan in future. Self-consciousness and proper supervision by the CBO staff and Concern Worldwide field workers were the other important contributing factors for timely repayment of loan. Overall, the CBO microcredit programme was found to have significant positive effects on livelihood improvement of the poor beneficiaries.