Impact Of Microfinance Research Articles

Perceived Impact of Microfinance on Livelihood Improvement in Kaski District of Nepal

This paper examines the perceived impact of microfinance on livelihood improvement in Kaski district of Nepal. The study is based on a primary survey limited to five MFIs working in rural parts of Kaski district. The impact of microfinance services on people's livelihoods was examined using a descriptive and explanatory research including paired sample t-test, and Wilcoxon signed-rank test The livelihood status of the clients has been measured in terms of economic (microbusiness creation, income level, saving habits, productive investment, consumption, and capital expenditures) and social condition (educational status, health status, women empowerment, and social networking) of the clients after microfinance intervention. The researcher randomly selected 150 clients involved in microfinance institutions for the last three or more years. Microfinance significantly affects the livelihood and raises standards of living. The study finds a significant impact of microfinance on the livelihood improvement of poor and marginalized people. Microfinance interventions have significantly improved clients' economic condition, including microbusiness creation, income level, saving habits, productive investment, consumption, and capital expenditures. The social conditions, particularly educational status, health status, women empowerment, and social networking of clients, have significantly improved. Microfinance can be useful for fostering economic growth and enhancing the lives of low-income people and communities, even though its efficacy is disputed. The regulatory authority should develop sound financial and social outreach efficiencies of microfinance institutions to ensure both the welfare of clients and the sustainability of micro institutions.

Impact of Housing Microfinance on Socio-Economic Indicators: A Study of Prime Minister’s Low-Cost Housing Scheme in Pakistan

The objective of this paper is to check the impact of dividend policy and firm Housing Microfinance / Low-Cost Housing Scheme has been promoted to fill the national housing demand/supply gap in Pakistan in recent years. Prime Minister’s Low-Cost Housing Scheme (PM-LCHS) was introduced with the aim of providing financial assistance to poor and deserving families enabling raise in their living standards. A total of Rs. 8.54 billion has been disbursed so far through Akhuwat Islamic Microfinance. The study aims to empirically test the impact of PM-LCHS loan utilization on beneficiaries’ welfare in terms of socio-economic indicators. This research also proposes to assess governance and administrative efficiency and design effectiveness of the initiative The total population of 17, 344 beneficiaries is sampled using Proportionate Stratified Sampling; Group 1 (stratum 1) constitutes beneficiaries who are in utilization phase and Group 2 (stratum 2) constitutes beneficiaries who are repaying the loan post 100% loan utilization. The proposed frameworks are tested using data collected from 463 beneficiaries. Key findings show that PM-LCHS utilization improved sense of security, societal standing and psychological conditions of respondents. Moreover, the loan utilization has enhanced multiple components of sanitation conditions and housing infrastructure; yet the repayment amounts causing no negative impact on their financial wellbeing. However, PM-LCHS utilization is not found to have any effect on beneficiaries’ health. Furthermore, Akhuwat has administered PM-LCHS efficiently and beneficiaries are satisfied from its governance. Thus, any other financial institution interested in offering such a HMF initiative must have appropriate human resource and skillset to reach the eligible clientele and address their financial requirements like AIM. Though, respondents are satisfied from the scheme as a whole, the study elucidates concerns about some design elements, namely financing limit, repayment period and number of disbursement instalments. These findings again have policy implications for the institutions seeking to enter the HMF market; incorporate these results to formulate the HMF/LCHS product that better suit the financing needs of low-earning people. The originality of this study is theorizing and empirically testing the effect of Housing Microfinance/ Low-Cost Housing Scheme and analyzing the linkages between PMLCHS loan utilization and beneficiaries’ living standards and welfare in Pakistani context.

The Impact of Microfinance on Socio- Economic Empowerment of Rural Women and Improving the Standard of Living in Karnataka.

Abstract: This study reviews annual reports of NABARD -“Status of Microfinance in India” on microfinance significance through savings by rural poor, financial inclusion, bank linkage and women entrepreneurship through SHGs for the upliftment of the standard of living of the rural poor of Karnataka state over the period from 2016-17 to 2020-21. In conducting this study five moderating variables are identified which are independent in nature and facilitates the act of poverty alleviation through microfinance. The data is being collected from secondary sources and analysed to know how SHGs and bank linkage of rural poor contributing for the women entrepreneurship for the upliftment of the standard of living of rural poor of Karnataka state by increasing savings among the members of SHGs. This Study reviews the amount of credit allocated for different aspects of microfinance to achieve the objectives set at the core

The Impact of Microfinancing on the Growth of India's MSME Sector: An Exploratory Study

The Impact of Microfinancing on the Growth of India's MSME Sector: An Exploratory Study

Impact of Microfinance on Poverty Reduction: A Case Study of Khushhali Bank Mirpur Khas District

Micro finance banks are an important tools to alleviate the poverty. They effectively helps the poor people by increasing their income level. The present study is designed to explore the impact of microfinance on poverty reduction in the Mirpurkhas district, using Khushhalibank as a case study. It examine the size of MF loan and effect of this loan on income level of beneficiaries. Analyzed the different variables like as size of loan, living standard and their impact on poverty rate. Sample of 300 respondent was taken randomly by using close ended questionnaire mainly focus on the customers of the Khushhalibank Mirpurkhas branch .Further raw data was analyzed with the help of SPSS 22.0 software and PLS . Finding concludes that microfinance is an effective tool for poverty alleviation, as it helps increase income and improve the living standards of the poor. Further suggests that microfinance institutions provide more effective opportunities for people living below the poverty line to invest money/capital based on their needs, experience, and knowledge. The study also suggests policy recommendations for planned improvements. The literature review highlights the importance of microfinance in poverty reduction, and how it has played a significant role in the economic development of people in rural areas. The study concludes that microfinance can be a powerful instrument in mitigating rural poverty.

The Impact of Microfinance on Economic Growth and Poverty Reduction in Malawi

Abstract: Poverty reduction has been a major concern in Malawi for a long time. Today, Microfinance has become an important instrument for poverty alleviation in developing countries. This paper aims to assess the Impact of Micro finance activities on Malawi’s economic growth and poverty reduction. The study findings will be of special importance for policy makers and stakeholders who may benefit from these results in improving regulations and strategies to strengthen the microfinance sector as main player in the financial system in Malawi. For this study 70 respondents from microfinance institutions were considered and surveyed using a structured questionnaire and interviews. The data collected is analysed with tables, percentages and diagrams using Microsoft Excel.

EMPOWERING WOMEN THROUGH MICROFINANCE IN NEPAL

The research article tried to highlight the impact of microfinance on women’s empowerment in the context of Nepal and the impact of COVID-19 on the business and economic sustainability of microfinance in Nepal. In this paper, the history of microfinance and the link between microfinance and women’s empowerment has been discussed comprehensively. Apart from that in the wider phenomenon of women empowerment, the theories on woman empowerment have been explained. The research gap here is stated as the effect of COVID-19 on these two topic variables. The methodology here was a descriptive design and conceptual framework to discuss the basic links between these two research variables. The challenges of human empowerment in Nepal, the influence of microfinancing in increasing the living standard of women, the economic effects of COVID-19 on females and the performance of MSI with rising Covid 19 effects have been discussed.

Exploring the Impact of Microfinance on Socio-Economic Characteristics of Borrowers in Khyber Pakhtunkhwa, Pakistan

Microfinance facility in Pakistan is extended by microfinance institutions to the micro entrepreneurs including Khushali Bank who took initiative being founder institution in Pakistan. It is operating since 1983 and extended enormous financing through loans employing a collateral with a sound recovery rate. This study attempted to find the effect of microfinance on the socio-economic conditions of the borrowers in the province of Khyber Pakhtunkhwa. Based on data gathered from old and new borrowers, the study analyzed the effect of microfinance on welfare of the household of the borrowers’ households concerning the housing conditions, food security, children’s education, poverty status, monthly income, and expenditures before and after availing the loan using “with or without approach”. Likewise, a non-parametric method was also employed to check the difference between old and new borrowers regarding income, consumption expenditure, housing improvement, access to education, and access to medical facilities, poverty status. The study reported that Microfinance significantly improve the borrowers life and living conditions, furthermore, this impact was much greater for the old borrowers as compared to the new ones.

Microfinance as a Tool of Socio Economic Empowerment of Rural Women

Abstract: Micro finance has become a tool of empowering the underprivileged people in the society. It plays a prominent role in the developing countries of Asia. These countries are having lots of success stories where the poor and backward people could manage to have sustainable source of revenue for themselves through microfinance. It is observed that in maximum cases women are plying a vital role in the use of micro finance through the self help groups (SHGs). This paper tries to see the impact of micro finance on the rural women of Assam - a state which is very near to Bangladesh, the country where microfinance has got tremendous response from the women folk. Through the research it was tried to see the impact of microfinance from the socio economic perspective of the North East India. The paper is based on primary data collected from the women respondents of rural area who have experience of working with the SHGs. The paper concluded that the micro finance has contributed to the empowerment of women in rural Assam and hence micro finance has a great future in this part of India.

A Study on Impact of Microfinance Institutions on Socio Economic Development of Saurashtran Women

Background: Microfinance in the global context is commonly referred to programmes meant for providing credit for self-employment and other financial and business services to poor persons. It is as same as extension of small loans to very poor for self-employment projects that generate income, allowing them to care for themselves and their families. Aim: The objective of the study is to analyze the present status of management of micro finance in Saurashtra and it is relation to impact of micro finance among women SHGs in the study area. Method: In the present study, both exploratory research and descriptive research have been used in accomplishing the objectives of the study. The researcher visited the various blocks on different dates and collected data from different self help groups. To analyze the primary data statistical tools such as Descriptive Analysis, Chi-square test, ANOVA, Garret ranking technique, Discriminate Function Analysis, Friedman Test Factor Analysis, Kendall's coefficient of concordance test, Kruskal-Wallis test, Neural network and Structural Equation Modeling have been used. Findings: The study conclude that a ailment of Microfinance loan from microfinance institutions is helpful in empowering women economically, socio-culturally and politically. The study also found that the beneficiaries have reasonable employment, increase in income and participation in household financial decision-making as compared to non-beneficiaries.

Impact of Microfinance on Micro, Small and Medium Enterprises (MSMEs) in Southwest Nigeria.

This study examines the impact of microfinance on micro, small and medium enterprises (MSMEs) in southwest Nigeria. The study employed primary data and Three hundred questionnaires (300) were collected from MSMEs operators. This study adopted a multi-stage random sampling technique in the selection of the sample. The study employed OLS regression to analyse the impact of microfinance on MSMEs. The study revealed that microfinance has a strong impact on micro, small and medium enterprises (MSMEs) in southwest Nigeria. The study shows that the impact of selected variables on MSMEs varied from BREG which have the lowest impact of about 0.07% to loan (LN) with highest impact of about 1%. This study is however able to discover that convenience of Loan Repayment has adverse effect on micro, small and medium enterprises (MSMEs) in southwest Nigeria. Hence, the study therefore recommends that government should make necessary policy to enable microfinance bank to offer medium term loan to MSMEs in order to make the loan repayment possible and affordable.

Microfinance, A Lifeline for Micro Industries in Pakistan: A Comparison of Governmental and Non-Governmental Microfinance Programs

The association of microfinance and entrepreneurship is increasingly recognized as a tool for the socio-economic development of dawdling regions. By contrast, most of the studies on the micro level have primarily focused on poverty alleviation and spending of loans on living standards and reached conflicting findings. Evidence on the impact of microfinance on entrepreneurial development in different regions has conflicting results. There is growing academic interest in geographical variations and a consensus that geographical disparities exist. This paper investigates the impact of microfinance programs offered by government and non-government organizations on the profitability, employment and sales growth of microenterprises operating in Pakistan. Using a sample of borrowers (treatment group) and respondents on the waiting list (control group) operating microenterprises, we provide evidence that the impact on the profitability of microenterprises is positive, with a higher mark for NGO borrowers. Moreover, the study's novelty compares the microenterprise industry and the findings that using loans in service sector business makes individuals more likely to move from a low-wage labourer to a more profitable entrepreneurship status. Our findings will help policymakers and academics identify the most relevant intervention areas.

Evolution of Microfinance and Its Relevance in Nepal

This research paper seeks to explore the evolution of microfinance in Nepal and its potential contributions to the nation's inclusive growth. This study employs a comprehensive and interdisciplinary approach, incorporating data from various sources, including government reports, academic research, and field observations. The research uncovers the historical development of microfinance in Nepal, tracing its roots from early government initiatives to the emergence of non-governmental organizations and international models. The paper also presents case studies showcasing the impact of microfinance on poverty reduction, women's empowerment, and financial inclusion in rural and urban areas. Challenges such as interest rates, regulatory frameworks, and accessibility are discussed in detail. Furthermore, the study explores the future prospects of microfinance in Nepal, emphasizing the role of technological innovations and financial product diversification's research paper provides a comprehensive analysis of the relevance of microfinance in Nepal, shedding light on its historical evolution, impact on poverty reduction, challenges, and future prospects. It highlights the critical role microfinance plays in providing financial services to marginalized populations in a diverse and geographically challenging nation. The paper concludes by underlining the continued importance of microfinance in Nepal's socio-economic development and the need for innovative solutions to address the challenges it faces. Keywords: Microfinance, Poverty alleviation, Economic development, Financial inclusion, evolution

The Study of the Impact of Microfinance on Small and Medium Scale Enterprises (SMEs) in Sierra Leone: A Case Study of ECOBANK Microfinance Sierra Leone

The Study of the Impact of Microfinance on Small and Medium Scale Enterprises (SMEs) in Sierra Leone: A Case Study of ECOBANK Microfinance Sierra Leone

Women Empowerment in Self Help Groups through Microfinance: A Case Study of Rautahat District

Microfinance institutions have assumed responsibility for promoting women's empowerment through economic and social development in developing nations .The primary objective of this study is to analyze the impact of microfinance on women's empowerment in Rautahat district. Women empowerment are measured by income & savings, ownership of assets, decision making, and mobility. This study is based on primary data through administered questionnaire to 209 women those who are involved in microfinance program in Rautahat District using convenience sampling method on a fivepoint Likert scale. The research employed descriptive, correlational, and regression techniques using the Statistical Package for Social Science (SPSS). From the study, it is found that microcredit is helpful in empowering women on social and economic dimensions. The provision of various services such as micro saving, microcredit, training and other awareness program through microfinance institutions contributes to the holistic development of women who participate in microfinance. The findings indicate that the women involved in microfinance programs experience a noticeable increase in their income levels and savings. Moreover, they exhibit higher ownership of assets, active involvement in household financial decision-making, and enhanced confidence in their mobility, compared to non-participants. The research has found that the microfinance has brought significant impact on empowerment of women. Based on these findings, microfinance emerges as a vital tool for poverty reduction and driving social change, which are key factors in promoting women's empowerment. The study highlight the significant role of self-help group microfinance empowering women. Keywords: self help group, women, empowerment, analytical, social change

The Study of the Impact of Microfinance on Small and Medium Scale Enterprises (SMEs) in Sierra Leone: A Case Study of ECOBANK Microfinance Sierra Leone

The Study of the Impact of Microfinance on Small and Medium Scale Enterprises (SMEs) in Sierra Leone: A Case Study of ECOBANK Microfinance Sierra Leone

An Integrated FCEM-AHP Approach for Borrower’s Satisfaction and Perception Analysis of Microfinance Institution

The main objective of this paper is to present an integrated approach to evaluate the level of satisfaction of borrowers with the products and services of microfinance institutions (MFI) at different criterion levels. For this, the study adopts the concept of FCEM (Fuzzy Comprehensive Evaluation Method) in concurrence with the AHP (Analytical Hierarchy Process). In our day-to-day situation, the researchers have made many efforts to assess the impact of Microfinance on poverty reduction, but borrowers’ satisfaction is always overlooked. Since the multiple factors impact the borrower’s satisfaction, each factor is made of different items. Thus, as the factors items increase, many uncertainties are created, and hence this will make the decision making unsmooth or imprecise. To describe this, the FCEM method deals with the vagueness in the collection information phase. However, the AHP has been utilized to determine the objective weights of each factor. The presented integrated framework has been illustrated with a case study and presented their results. The study’s managerial benefit is also reported to address the situation.

Exploring the role of microfinance in encouraging entrepreneurship using unsupervised learning

Microfinance institutions in India have a significant role in providing financial services to a large sector of users who would otherwise be unable to access these services. These institutions have an important role in the reduction of poverty by providing small loans to the users. This study examines the impact of microfinance on entrepreneurial activities in Indian context. Two widely used machine learning approaches, Principal Component Analysis (PCA) and clustering have been employed to identify correlation among the microfinance and a set of selected factors. The selected factors have been associated with Gross Loan Portfolio (GLP), since the GLP has been used in the literature as a significant control variable for computing the entrepreneurship level. Initially, PCA technique has been applied to determine main principal components, and then K-Means clustering has been applied to get clusters, in order to get the labelled dataset. The labelled data obtained from K-Means clustering is useful for applying classification techniques, through which we can predict level of entrepreneurship using Supervised Learning. Finally, the results obtained from machine learning algorithms indicate that GLP being the main contributing factor for computing the entrepreneurship level.

Impact evaluation of microfinance: a HEPM perspective

Microfinance services were primarily conceived for poverty alleviation and millions of borrowers have benefited across various countries. This study measures microfinance impact on borrowers from the following dimensions viz. enterprise, household, individual and security. The impact was measured by comparing the borrowers’ poverty level before and after microfinance (within impact), and then with and without microfinance (between impact) using Household Economic Portfolio Model (HEPM). In general, it was observed that microfinance has had a favorable impact on borrowers. The income level of borrowers has increased after they availed the loan indicating that participant borrowers’ financial position is better than that of the non-participant borrowers. The results confirm that both industry survival and growth are achievable thereby advocating that microfinance is a sustainable development tool in the current scenario. Hence, policymakers should continue framing strategies that are in favour of extending microfinance to micro-enterprises that are deprived of mainstream finance.

Microfinance for Poverty Reduction in Pakistan: A Sectoral Analysis

The study analyzes the impact of microfinance provided by Khushhali Microfinance Bank Limited (KMBL) for poverty reduction in district Sargodha. It explores explicitly the sectors in which credit usage is more helpful for poverty alleviation. For this purpose, we collected the primary data of 300 households from KMBL. The findings revealed that microfinance played a vital role in poverty eradication. The binary logistic regression implied that males were more likely to be poor than female borrowers. There was a negative and statistically significant relationship between educational attainment of the respondent and poverty level of the household. The existence of the market and poverty level were negatively correlated. Most importantly, the trading and services sectors had a significant contribution to poverty reduction among all the sectors. Hence, there is a need to increase female participation in the credit program. Special attention should be given to the borrowers to utilize their loans in the trading and services sectors, which are more helpful in coming out of poverty.