Plagued by unpredictable weather conditions and fluctuating markets, farming in developing countries is a risky occupation. While farmers save to smoothen consumption and take agro loans to reap higher farming income, they rarely have access to formal savings mechanism that provides interest. Having access to formal savings that provide interest while engaging in agro production backed by a micro loan would allow farming households to diversify their household economic portfolios to enjoy a higher level of consumption that not only will smoothen day to day financial constraints but also provide better contingencies against external shocks. This study examines the impact of having access to formal savings and loan programs on the level of consumption of farming households by considering savings and loan backed agro production as assets whose returns are maximized when held together in a portfolio.


Moledina, Amyaz




microfinance, micro savings, micro loans, bangladesh, household economic portfolio, farming

Publication Date


Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis



© Copyright 2011 Sadaf Asrar