Impact of NGO’s Credit on Agricultural Productivity in Bangladesh

Boosting agricultural output is a vital tool for long-term economic development, food security, and nutrition and poverty alleviation in Bangladesh. The objective of this study is to analyze how NGO’s credit affects agricultural output in Bangladesh. The study used secondary data collected from the reports submitted to the Bangladesh Microcredit Regulatory Authority, and the Bangladesh Bureau of Statistics, covering data from the period of 2005 to 2019. A Multiple Linear Regression method was employed to test the hypothesis. The study results can be used to found that credit extended by NGOs to the agricultural sector has a substantial, beneficial effect on agricultural output and productivity across the country. It is also revealed that increasing NGO credit to Agriculture increases agricultural production by 1.19 metric tons per million taka credit provided by NGOs. The study findings can be significant to policymakers, bankers, other financial institutions, and farmers to maximize the impact rural financing on agricultural development. Our research identified the extent of NGO’s credit’s role on agricultural output which is valuable for agricultural development and designing credit policy to extend the agricultural finance at present in Bangladesh.