LAUSR

Poverty is multidimensional in nature and exists in every part of the world. Microfinance is considered one of the most important programs to achieve poverty reduction, particularly in Bangladesh. It has been estimated that nearly 45% of Bangladesh's population lives below the poverty line. This qualitative research study was conducted in order to determine the effectiveness of microfinance programs and the contributing factors to the high-level of poverty among microfinance beneficiaries in the district of Bogra, Bangladesh. Study findings indicated that microfinance programs were ineffective as a result of high interest rates; insufficient loans; unproductive use of loans; corruption and poor skills of microfinance institution staff; weekly repayment schedules; and physical and mental harassment of poor women. Additionally, the lack of employment opportunities, education, healthcare facilities and social safety nets; natural disasters; the dowry system; and the rising cost of basic daily needs have also contributed to chronic poverty.