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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Impact of Microfinance on Poverty Alleviation: A Case Study of NRSP in Bahawalpur of Pakistan

Sunia Ayuub

Open access

The purpose of the research paper is to measure the impact of Microfinance on Bahawalpur District. Main Microfinance Institutes in Bahawalpur are National Rural Support Program (NRSP) Microfinance Bank (MFB), Tameer Microfinance Bank, Khushhali Bank, First Microfinance Bank and Kashf Foundation. For this report data has been collected through questionnaire, descriptive research and interviews from Microfinance Banks and some of their clients. Mostly in our rural areas credit is not available to the farmer on time or they can get it only on very high interest rate. So there is great potential of Micro Financing in Bahawalpur region. Many developing countries like Bangladesh, India, Sri Lanka and Pakistan are using microfinance to increase the living standard of their people. But in Pakistan main focus of Microfinance Institutes (MFIs) was only to give credit. This paper mainly focuses on the impact of NRSP on this area, so borrowers have been taken as sample from NRSP and customers are selected randomly. Increase in income level and customer satisfaction level was observed in this report but this increase is not so significant. There are still high potential markets that need micro finance. Rate of interest charged by these MFIs are very high and their main focus is on Agriculture sector only. There is a strong relationship between microfinance and poverty alleviation. The results also showed that Microfinance Scheme help people to improve their living standard and provide them financial opportunity to expand their business. Microfinance is the key strategy that leads to quick revival of economy, increase in living standards and empowerment.

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In-Text Citation: (Ayuub, 2013)
To Cite this Article: Ayuub, S. (2013). Impact of Microfinance on Poverty Alleviation: A Case Study of NRSP in Bahawalpur of Pakistan. International Journal of Academic Research in Accounting Finance and Management Sciences, 3(1), 490–509.