Effectual Insights Of Microcredit Services To Rural Livelihood: A Southern Punjab Perspective

Abstract

Uncertain economic situation of developing countries like Pakistan is posing threat to marginalized societies and lives in rural areas. Microcredit is considered as most efficient tool in mitigating the vulnerable condition i.e. either due natural calamities or economic policies. This study was fact finder is checking the impact and highlighting the problems associated with microfinancing. For the purpose cross-sectional study was carried out in three randomly selected districts of Punjab province. From each district 200 beneficiaries of microfinancing were selected using lists provided by the regional offices of MFIs. Data obtained through interview schedule from sample of 600 was analyzed using SPSS. Results revealed that respondents received microcredit both for social as well as agricultural purposes. Results showed that percentage share of farm income have been increased after receiving of microcredit. There is a relatively lower impact of microcredit on some indicators such as access to education and health facilities, contribution to family income, and household income level. For tackling the problems like in-time disbursement and repayment, monitoring, business advisory to front man and regular meetings with borrowers can make difference. However, introducing reward system for repayment can be effective.