Impact of Micro Finance in Alleviation Poverty

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Abstract Poverty has been a serious issue that needs to be addressed in developing and under developed countries. Developing countries like Bangladesh and India have been putting emphasis on micro finance as a tool to fight poverty. The aim of this research study is to examine the impact of micro finance on living standards of its borrowers (low income class) of Lahore- Pakistan. In addition, a comparison has been made between Khushali Bank and Tameer bank on the basis of its customers’ satisfaction. Customers of these two above mentioned banks have been selected as the population for this study, the total sample size is 60 (30 respondents from each bank), and questionnaire has been used to collect the response. Through chi square analysis and correlations it has been found that increase in income and living standard have a strong association and through two-proportion testing it has been concluded that Tameer Bank is performing better than Khushali Bank on the basis of its customers’ satisfaction. CHAPTER 1 INTRODUCTION Introduction Poverty is a condition in which a man is unable to fulfill his basic needs like food, residential place for living, education and health care. Most of the countries are trying to curb poverty by engaging them into income generating activities, so that they become self-sufficient. “Lack of access to essential resources goes beyond financial hardship, to affect’s people health, education, security and opportunities to political participation,” United Nation Development Programme Annual Report (2008). What is Microfinance? It is the provision of small loans in order to engage in productive activities or set up small businesses, to poor people who cannot provide collateral security. Unlike traditional banking, which gives large loan amounts along with longer payback periods, micro finance is

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