The contribution of microfinance to boost economy through poverty alleviation and employment generation is now arguably established all over the world. But based on the societal context of many countries, a new form of microfinance instrument called Islamic microcredit has emerged in the market. This research tries to explore the role of Islamic microcredit in Bangladesh in increasing the borrowers’ income. For that, a total of 87 Islamic microcredit borrowers under the Rural Development Scheme of Islamic Bank Ltd. were interviewed with a structured questionnaire in the third quarter of 2015 to collect data. Expectedly, the research finds that Islamic microfinance helps the poor people get out of poverty through the rise of their income.
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