Determinants of microcredit satisfaction: Evidence from borrowers in Dhunat Upazila, Bogura, Bangladesh

Abstract

Borrower satisfaction is central to the sustainability of microcredit programs, yet evidence from rural Bangladesh remains limited, particularly on non financial determinants. This study examines how service quality, security, cost, social influence, and trust shape the satisfaction of microcredit borrowers in Dhunat Upazila, Bogura, Bangladesh. A quantitative cross sectional design was adopted, and primary data were collected from 140 borrowers, selected through convenience sampling, using a structured questionnaire with Likert scale items. The data were analyzed using descriptive statistics and multiple regression in SPSS. The results show that trust and security have significant positive effects on borrower satisfaction. Social influence has a significant negative effect, indicating that peer and community pressure reduces satisfaction. Cost has a negative but statistically insignificant effect, and service quality has a positive but insignificant effect. Overall satisfaction was low to moderate. The findings suggest that microfinance institutions should prioritize transparent procedures, secure handling of client information and funds, and voluntary rather than socially pressured participation, while keeping borrowing costs reasonable. The study contributes borrower centered evidence from a rural Bangladeshi setting, although the single upazila, the convenience sample, and the untested scale reliability limit generalization.