Microfinance alleviates poverty in Pakistan : case study of FINCA Microfinance Bank Ltd
Riaz, Muhammad Jahanzaib (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024122938171
https://urn.fi/URN:NBN:fi:amk-2024122938171
Tiivistelmä
Poverty is a universal reality, and its fatal effect is undeniable all over the world. Although it is a global issue, it affects most developing countries like Pakistan. This survey-based research aims to evaluate the effect of microfinance on poverty reduction, provided by Pakistan's FINCA Microfinance Bank. The study attempted to examine how microfinance affects poverty using quantitative research methods.
The entire client base of FINCA Microfinance Bank Ltd. served as the study's population, and Slovin's Formula was used to calculate the study sample. Following the survey, it was discovered that microfinance significantly reduces poverty by raising beneficiary income and household spending. People still have to deal with issues like excessive interest rates and guarantees from microfinance institutions, despite the importance of microfinance. Likewise, microfinance organizations encounter certain difficulties as well, such as debt recovery, and the majority of clients default.
According to the outcome of the study, microfinance plays a very important role in poverty alleviation, but there is also room for improvement in the policies of banks to facilitate people in a better way.
The entire client base of FINCA Microfinance Bank Ltd. served as the study's population, and Slovin's Formula was used to calculate the study sample. Following the survey, it was discovered that microfinance significantly reduces poverty by raising beneficiary income and household spending. People still have to deal with issues like excessive interest rates and guarantees from microfinance institutions, despite the importance of microfinance. Likewise, microfinance organizations encounter certain difficulties as well, such as debt recovery, and the majority of clients default.
According to the outcome of the study, microfinance plays a very important role in poverty alleviation, but there is also room for improvement in the policies of banks to facilitate people in a better way.