As found by Hartangi (2007) that success of Micro finance depends upon the practices of that specific bank, which finance poor people, by quoting and example of BRI (Bank Rakyat, Indonesia) researcher says that they provide technical and moral support to the people they lend money, and make sure they do good, they also choose different collaterals like motorcycle, cars, cattle, and land etc to secure their loan yet making collateral stronger incase the client fails to repay and credits interesting for lower class community. Beside this, Risk management, internal audit, financial procedures, transparent system, dedicated staff, and clear incentives to staff and clients are the factors which contribute toward the successful lending of micro finances. Obamuyi (2009) says that poor credit culture and low risk management can result in low rate of return, which finally ends with the failure of the scheme. The risk of low rate of return can also be minimized by the assistance provided by the MFIs to develop the small business of clients (Zelealem, Temtime, & Shunda, 2003). RESEARCH METHADOLOGY Study type This study is a correlational study in which relation between income level, living standard, access to education, and empowerment due to micro financing in Pakistan is studied. Study setting Study was conducted in natural environment, and no lab settings were used while studying the relationship between income level, empowerment, access to education, and access to health facilities due to MFIs in Pakistan has been studies, which makes this study a non-contrived study. Unit of Analysis Different individuals, who obtained micro finances from Micro financial institutions of Pakistan, were asked to record their responses. Time Horizon Data was collected from individuals who obtained micro finances from MFIs in Pakistan once in one month time period; there will be no further data collection for this study. The collected responses are one shot, which make this study a cross-sectional study. Data This study utilized primary data as well as secondary data. Primary data was gathered from individual who obtained micro finances from MFIs in Pakistan, data was gathered using a prepared research instrument. And secondary data was collected for literature review, from different online research databases. Data Analysis Data was inspected, cleaned, transformed and modeled using SPSS V.17.0 to highlight useful information. Linear Regression was applied as per the requirement of the study to explore the relationship between increase in income, living standard, access to education, and empowerment, due to MFIs in Pakistan. Sampling type A non probability convenience sampling was done, questionnaire were distributed among customers of MFIs who were conveniently available to the researcher.
First and foremost, the first factor in poverty covers the Economic life course; the capacity of a ma...
Shah, Anup. “Poverty Facts and Stats.” Global Issues. 07 Jan. 2013. Web. 19 Nov. 2013. .
Women in developing countries are not empowered by micro-loans because it can exert women further into debt. Not all women are smart and educated enough to be able to profit from these micro-loans and instead they can be quite dumb and irresponsible with the exerting them further into debt. This does not apply to all the women who receive micro-loans, but a decent portion of them it does. Although, micro-loans could be the key success to a family's triumph out of poverty, they can still propel people into a rough and tough situation. Also, if a women’s micro-loan does not work out they will be put to shame by their whole entire community.
Markets & Customers: Cashpor provides microfinance and other credit services to below the poverty line women in Uttar Pradesh, Bihar and
The evolution of the banking industry in Malaysia has led to conventional banking products and services , such as deposits and loans / hire purchase , taking the characteristics of a more sophisticated and advanced as mobile banking , phone - a- loan , auto pergajian , auto debit, ATM , online shopping and banking. This feature is facilitated by the development of advanced technologies that allow customers to enjoy the manner and process more convenient for their daily banking .
The lifestyle of people across the world is developing rapidly. As there is a growing concern for people about the lifestyle and way of living, the scope for the microfinance industry is also at a growing pace. A large number of people across the world prefer finance for the purpose of purchase of consumer durables as well as lifestyle products. As the credit card EMI options are more expensive, people prefer NBFCs for the purpose of consumer durable loans. The project done in bajaj finserv explains the role of NBFCs in the consumer durable loans and the procedure undertaken in order to disburse the consumer durable loans.
State Bank of Pakistan (2009). Prudential Regulations for Small and Medium Enterprises Financing, Banking Policy and Regulations Department.
Poverty has been a problem all over Pakistan, however the government should make sure that they divide the resources equally in all areas sop everyone is served equally.
This report analyses social and economic factors such as, risk of poverty, employment rate and population completed at least upper secondary education. In this report you can find summary of the data, descriptive statistics, correlation and regression analysis, which shows that poverty has a small negative relationship with employment rate and negative relationship with education. Thus, this means if countries would increase employment rate and increase number of people who finish secondary education they would be able to reduce poverty level in the countries.
1.Christen, Robert Peck; Rosenberg, Richard & Jayadeva, Veena “Financial institutions with a double-bottom line: implications for the future of microfinance” (July 2004)
Women play multifaceted roles and do remarkable works in their respective areas for the welfare of the families, communities and the nation. Kitty party funds help women to increase their income-earning abilities, leading to greater power to overcome cultural asymmetries. Kitty party funds rely more on pooling the poor’s savings have more appeal than microcredit. Microfinance sector is led by microcredit, kitty part funds could bring even more business in this. This paper throws light on the role of kitty party funds in the development
To study and analyze recent standing of Financial Inclusion in the Jammu and Kashmir State.
Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011).
When a woman takes out a loan, 5% can not always pay it back which is crucial. Based off of “The Hidden Ways Microfinance Hurts Women”, Lamia Karim explains that “Women who cannot repay a loan are subjected to public shaming by the entire community of borrowers, who are pressured hard by microfinance institutions to recover or repay the defaulted sum themselves, lest they risk losing access to future loans.” Basically, the author is telling the reader that women who are not able to pay back loans are given consequences, potentially ruining their life by not being able to take out a future loan. On the other hand, women who can pay back their loans do well for themselves. For example, from chapter 21 of Geography Alive, Margaret Saajjabi came from a poor family where she couldn't get an education. She started her micro-enterprise by selling laundry soap and bottled soft drinks. Saajjabi now supports her 6 children and 19 nieces and nephews with an education and much more. Micro-loans can be dangerous to a woman's life if they can not come up eight he money to pay off their loan, but the women that can often become successful. 95% of the women can pay back their loans and hopefully start a healthy micro-enterprise to help the impoverished nation, thus making them more
Microfinance refers to provision of financial services to poor or low-income clients, including consumers and self-employed.in other words, it refers to a movement that envisions “a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, it includes not just credit but also savings, insurance, and fund transfers.”. Promoter’s microfinance generally believes that such access will help poor people out of poverty.