Purpose: This study is designed to investigate the role of micro finance on the economic and soci... more Purpose: This study is designed to investigate the role of micro finance on the economic and social development of people in the rural areas of the Province of Sind Pakistan. This study considers and compares two situations of the respondents: economic and social conditions before and after taking micro loan. Methodology/Sampling: The target population for this study is those people who planned to take micro credit from the banks with objective to change their lives by investing such funds in their existing business or opening new business. We conducted survey about their economic well being before taking micro credit (Feb-July 2013) and than revisited to them after a year and determined their status after taking micro credit. The study considers descriptive as well as statistical analysis such as Chi square, OLS estimation and one sample T test. Findings: The study concludes that there is no change in Economic Conditions of Borrowers after accusation of Micro finance. The micro finance could not improve their Business growth as well. However, in Social Development, there is significant improvement in the Life Style of borrowers, whereas, there is no significant improvement in Health and Education needs of Buyers before and after taking of micro finance. The study further concludes that borrowers believe that the Loan Amount provided is not sufficient for their needs and both the repayment schedule and interest rate are not reasonable to facilitate them. Practical Implications: this study provides bases for new dimensions especially for the policy makers and the regulatory bodies that term structure of Micro credit should be revised as well as the amount of loan should also be sufficient enough for the borrowers' need.
Purpose: This study is designed to investigate the role of micro finance on the economic and soci... more Purpose: This study is designed to investigate the role of micro finance on the economic and social development of people in the rural areas of the Province of Sind Pakistan. This study considers and compares two situations of the respondents: economic and social conditions before and after taking micro loan. Methodology/Sampling: The target population for this study is those people who planned to take micro credit from the banks with objective to change their lives by investing such funds in their existing business or opening new business. We conducted survey about their economic well being before taking micro credit (Feb-July 2013) and than revisited to them after a year and determined their status after taking micro credit. The study considers descriptive as well as statistical analysis such as Chi square, OLS estimation and one sample T test. Findings: The study concludes that there is no change in Economic Conditions of Borrowers after accusation of Micro finance. The micro finance could not improve their Business growth as well. However, in Social Development, there is significant improvement in the Life Style of borrowers, whereas, there is no significant improvement in Health and Education needs of Buyers before and after taking of micro finance. The study further concludes that borrowers believe that the Loan Amount provided is not sufficient for their needs and both the repayment schedule and interest rate are not reasonable to facilitate them. Practical Implications: this study provides bases for new dimensions especially for the policy makers and the regulatory bodies that term structure of Micro credit should be revised as well as the amount of loan should also be sufficient enough for the borrowers' need.
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Papers by Tariq Ali