The impact of the microcredit interest rate on capital creation in Bangladesh
by Sheikh Ashiqurrahman Prince; Shivan Sanjay Patel; Tanmay Borman; Hamdan Sulaiman Al-Fazari
J. for Global Business Advancement (JGBA), Vol. 13, No. 6, 2020

Abstract: This research examined how micro-credit and its interest rate affect capital creation in Bangladesh. Theories and ideas from the literature review were applied, and variables to detect the knowledge gap were identified. The study's conceptual model was developed to resolve the gap, and the planned behaviour theory is used to explain the model. Using stratified random sampling, 364 clients' sample data were collected from a microfinance institution located in Lalmonirhat region, and AMOS graphics and PROCESS Macro in SPSS were applied to generate the results. The findings indicate that although microcredit generates capital, the excessive interest rates inhibit the creation of capital to the desired level in Bangladesh. The research extends the existing literature by demonstrating that the interest rate mediates the relation between micro-credit and its capital creation. The research findings will assist organisations and the government in enhancing poverty alleviation and rural employment policies and programmes in Bangladesh.

Online publication date: Fri, 19-Feb-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for Global Business Advancement (JGBA):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email