Case Study
Dimensions and Dynamics of Microfinance Membership Overlap: A Micro Study from Bangladesh
Analyzing multiple membership in MFIs
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This paper examines the issue of multiple microfinance membership in Bangladesh. The study is based on data from BRAC’s operations in Tangail.
The study focuses on understanding membership overlap by studying the borrowing behavior of BRAC members with multiple NGO membership. It explores:
- Factors distinguishing multiple membership households from those with only BRAC membership;
- Factors driving households to adopt the overlapping strategy;
- Reasons for overlapping such as distress or opportunities;
- Effects of overlapping on repayment performance.
The study states that poor households often resort to multiple borrowing as a risk-prevention strategy. Controlling multiple membership and borrowing requires concrete measures for providing protective financial services along with strategies for diversifying the range of promotional services.
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