| dc.description.abstract | The concept of Islamic microfinance is comparatively newer to the conventional
microfinance system in Bangladesh. When the conventional microfinance system has its
own benefits, the Islamic microfinance system provides some benefits too. There are
borrowers who are taking loans from conventional microfinance system and there are
borrowers who take the capital for investment from Islamic microfinance system. The
purpose of the study was to find out the key differences between the two systems and how
the institutions are impacting the socio-economic standard of their beneficiary. In this
study, we have used qualitative analysis to carry out a comparative analysis between the
two systems in Chittagong, Bangladesh. To reach a conclusion on the standard of living of
the borrowers, we divided the data into four main sectors that are: income, expenditure,
basic necessities and savings. We looked into the economic condition of the borrowers
before and after taking the loans from the institutions. The questionnaire aimed to know
their food habits, child’s education, and availability of well-built toilet, income sources
and health care facilities before and after they took loans from both types of microfinance
institutions. As per our key findings, it turned out that the borrowers of conventional
microfinance system had better socio-economic development because they communicate
with their borrowers better than the Islamic microfinance institution and the Islamic
microfinance institutions are not operating properly due to lack of understanding in the
concept of Islamic microfinance in terms of Sharia law. The results are discussed
elaborately below. | en_US |
