Assessing the Impact on Consumption Pattern Due to of Micro Credit :

A Case Study on Dhaka City

Abstract

 This paper explores the critical issues of urban poverty of Bangladesh. It also investigates whether consumption of the urban poor of Dhaka city can be improved through micro-credit offered by the Non Government Organizations (NGO) of Bangladesh. For the study, we have collected primary data by using a structured questionnaire. A total number of 100 respondents were selected randomly who provided usable response. We also used secondary data to develop theoretical background of the study. The study reveals that consumption pattern of the poor of Dhaka city did not improve significantly with the use of micro-credit. If micro-credit could be given in larger amount then it might be more effective to the poor of Dhaka city. It might then be able to improve the consumption pattern of the poor of Dhaka city. The lenders must scrutinize and consult with the borrowers before delivering the micro-credit so that more suitable use of micro-credit can be ensured. Then, these poor of Dhaka city might become capable of improving consumption levels significantly with the help of micro-credit.