Impact assessment of credit programme for the tenant farmers in Bangladesh

Impact assessment of credit programme for the tenant farmers in Bangladesh

This study report gives us the latest evidences from a randomized field experiment on an innovative micro-credit programme for the tenant farmers in Bangladesh. Tenant farmers, who dominate the agrarian structure in Bangladesh, have been bypassed by the conventional micro-finance institutions (MFIs) and formal banking sector which results inadequacy of working capital and hence lower access to inputs and lower productivity.

Operational strategies and design of credit facilities provided by these institutions are not compatible to the farm practices and livelihood styles of the tenant farmers that lead towards them to inefficient loan uses. Guided by this instance BRAC, the largest non-government organization in the world, introduced the ‘Tenant Farmers Development Project’ (Borgachashi Unnayan Prakalpa or BCUP) in Bangladesh using its grassroots level network to ease financial inclusion and provide a small range of complementary extension services for the small and marginal tenant farmers.

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