scholarly journals Impact of Micro-Credit on Poor Households in Kurigram District

2018 ◽  
Vol 5 (1) ◽  
pp. 102
Author(s):  
Thuhid Noor ◽  
Farid Saha ◽  
Rabiul Auwal
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Developing Economies ◽  
Financial Education ◽  
Good Health ◽  
Living Standard ◽  
Poor People ◽  
The Impact ◽  
Micro Credit

This paper aims to examine empirically the impact of micro-credit and the living standard of poor people in former enclaves. People of the former enclave economy, like all developing economies, live in rural areas and their living standard are not good. Therefore, the need to improve the living standard of those areas gave birth to the establishment of the Micro-credit organizations in Bangladesh. These organizations targeted low income clients through giving loans and other facilities like savings, insurance, and transfer services to poor low-income households and micro enterprises. Dashier Chara, one of the deprived regions in all former enclaves, was selected to study the impact of Micro credit activities and the living standard of poor people in the area. Primary sources of data collection method were used, and structured schedule also used in the study. The main finding was that the impact of micro credit has contributed positively to improve the living standard of poor people. The contribution was evident in improving their property acquired, housing conditions, livelihood improvement, their income, and subsequently led to good health and education for their families, acquisition of assets. Based on the findings, it is recommended that financial education should be intensified to educate people on financial services.

scholarly journals Impact of Microcredit on Living Standard of Dairy Entrepreneurs: Special Focus on Oddusuddan DS Division in Mullaitivu District

2019 ◽  
Vol 3 (2) ◽  
pp. 43-48
Author(s):  
Saseela Balagobei ◽  
Sankeetha Aravinthakumar
Keyword(s):  
Quantitative Analysis ◽  
Low Income ◽  
Rural Areas ◽  
Positive Impact ◽  
Primary Data ◽  
Living Standard ◽  
Poor People ◽  
Special Focus ◽  
The Impact ◽  
Micro Credit

Microcredit is part of micro finance, which provides a wider range of financial services for low income people. Micro credit serves as a vital role for Living standard of poor people in the developing countries as well as in Sri Lanka. In this Study Oddusuddan DS division in Mullaitivu district was selected as research area. After the 30 years conflict situation most people in the Oddusuddan area in Mullaitivu district are subordinate to the poverty line, because most of the displaced people who are female other than male staying here. Women lost their male relatives in struggle, and forced to take a responsibility of their family in order to look after their children, aged parents and their male relatives.  Micro credit helps the poor people particularly women in effective ways in order to create income generating activities.  The prime objective of this study is to investigate the impact of Microcredit on living standard of dairy entrepreneurs in Oddusuddan DS division in Mullaitivu District. In the rural areas of Mullaitivu, Oddusuddan Divisional Secretariat Divisions 100 dairy entrepreneurs were selected as the sample size of population. The selected entrepreneurs who have received loan from samurdhi bank for dairy farming activities in Oddusuddan DS Division. Primary data were used for gathering information and quantitative analysis was carried out to find out the results. In the quantitative analysis the correlation and regression methods were employed to examine the hypotheses by using SPSS. The result of this study concluded that there is a positive impact of samurdhi micro credit on living standard of dairy entrepreneurs in Oddusuddan DS Division. In addition to this, using micro credit facilities create more job opportunities and variety of economic activities and improve household education, income, saving and heath condition of the people. The study recommends that micro credit institution should consider improve the living standard of dairy entrepreneurs through increase the loan amount with lower interest rate.

scholarly journals The Islamic Microfinance System And Its Ultimate Impact On The Poor In Bauchi Metropolis In The Context Of Socio-Economic Challenges

2021 ◽  
Vol 5 (1) ◽  
pp. 95-101
Author(s):  
Hashim Sabo Bello ◽  
Shamsuddeen Abubakar ◽  
Sunusi Abdulkadir Fateh
Keyword(s):  
Social Services ◽  
Low Income ◽  
Financial Services ◽  
Poor People ◽  
Microfinance Institutions ◽  
Islamic Microfinance ◽  
And Gender ◽  
High Level ◽  
Financial Transactions ◽  
The Impact

One of the conditions for providing social services to the population, reducing the differentiation of their incomes, as well as reducing poverty is to provide equal access to financial services for all segments of the population. Despite high unemployment and a significant number of poor people, only about a few thousand Nigerians today use Islamic microfinance services. The main purpose of this study is to study the impact of the Islamic microfinance system on the financial situation of the population. The study is based on the principles of the theory of positivism. Methods of deduction, statistical analysis, and survey served as methodological tools. The authors of the article developed a structured questionnaire, the analysis of which allowed to analyze the attitude of citizens to Islamic microfinance services. A representative sample of citizens of the metropolis Bauchi with different levels of wealth, age and gender was selected for the study. According to the results of the survey, the development of special microcredit programs for low-income people allowed to finance the start of their own business, thus providing their own and household members’ employment. The main factors hindering the development of microfinance in Muslim countries are the high level of non-repayment of borrowed funds, imperfect infrastructure, the presence of Sharia bans on certain types of financial transactions. The results of the study showed the need for an active information campaign aimed at explaining the benefits of using macro-financial services and their accessibility for low-income citizens, as well as expanding the network of microfinance institutions throughout the metropolis. These measures will create conditions for the development of small business in the country, and as a consequence reduce poverty and reduce the number of unemployed in the country.

scholarly journals Proposed Theoretical Measurement Model for Financial Inclusion with Perspective of Refuge Inhabitants

2018 ◽  
Vol 7 (1) ◽  
pp. 21-25
Author(s):  
S. Sheik Abdullah ◽  
A. Krishna Kumar
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Measurement Model ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Poor People ◽  
Supply Side ◽  
Complex Processes

Financial inclusion takes into account the participation of vulnerable groups such as weaker sections of the society and low income groups, based on the extent of their access to financial services such as savings and payment account, credit insurance, pensions etc. Also the objective of financial inclusion exercise is easy availability of financial services which allows maximum investment in business opportunities, education, save for retirement, insurance against risks by the rural individuals and firms. The penetration of financial services in the rural areas of India is still very low. The factors responsible for this condition can be looked at from both supply side and demand side and the major reason for low penetration of financial services is, probably, lack of supply. The reasons for low demand for financial services could be low income level, lack of financial literacy, other bank accounts in the family, etc. On the other hand, the supply side factors include no bank branch in the vicinity, lack of suitable products meeting the needs of the poor people, complex processes and language barriers. There is no studies conducted earlier especially financial inclusion initiatives with refugee inhabitants. Therefore this study was undertaken to propose the model of refugee inhabitants towards financial inclusion initiatives by the banks. The exhibited model consisting four essential factors, which are very useful for measuring financial inclusion practices.

scholarly journals Issues and Challenges of Financial Inclusion Among Low-Income Earners In Rural Areas of Malaysia

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 277-299
Author(s):  
Salihah Sharizan ◽  
Nur Harena Redzuan ◽  
Romzie Rosman
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Financial Inclusion ◽  
Primary Data ◽  
Structured Interviews ◽  
Finance Industry

Financial inclusion (FI) appears to be one of the main global agendas as it is an essential way of reducing poverty and increasing the economic growth of a country. FI is the provision of financial services to all segments of society in a more convenient, quality, and affordable way. In this study, the authors analyzed the issues and challenges faced from the two perspectives of the Financial Institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. Primary data was collected by conducting semi-structured interviews with four expert bankers from the Financial Institutions (FIs) in Kuala Rompin, Pahang, and two representatives from the B40 customers in the rural areas of Pekan, Pahang, Malaysia. Based on the findings, barriers faced by the supply sides of the FIs include 1) high risk of cost and security, 2) barriers in communication and lack of financial education, and 3) lack of proof documents. The other challenges are 1) competition with the conventional institutions, 2) default risk due to non-payment, and 3) internet connection problem. On the demand side, the issues and challenges found include 1) lack of confidence, 2) lack of proof documents, 3) misuse of capital, and 4) lack of financial literacy. Henceforth, the findings have significant implications for the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia.

scholarly journals CBO Based Microfinancing in Pakistan: Comparative Analysis of Akhuwat Foundation and Kashf Foundation

2021 ◽  
Vol VI (III) ◽  
pp. 9-18
Author(s):  
Muhammad Salman ◽  
Sana Malik ◽  
Fariha Tariq
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Vital Role ◽  
Living Standard ◽  
Poor People ◽  
Mutual Support ◽  
Low Income Groups ◽  
The Relationship ◽  
Depth Interviews

Poverty is a risk to harmony, which results in the dismissal of human rights. Microfinance is a tool that is famous across the world as a solution to alleviate poverty. Through this tool, lowincome households can have permanent access to a range of high-quality and affordable financial services that are offered by a range of retail providers. Community-based organizations, commonly known as "CBO", play a vital role in providing microfinance to the needy group of people, which determined the relationship between microfinance and poverty alleviation. This research presents a comparative study between Akhuwat Foundation and Kashf Foundation microfinance models for providing housing finance to low-income groups. A qualitative approach has been applied to determine the relationship between microfinance and poverty alleviation. In-depth interviews are conducted with working staff and borrowers of Akhuwat Foundation and Kashf Foundation (microfinance organizations). The research concludes that both organizations strive to alleviate poverty and to enhance the living standard of low-income people through mutual support in the system. The study also suggests that these organizations should need to emphasize more on the diversified needs of the poor people and must aim to serve the most extremely poor strata of the population.

scholarly journals Evaluating the Impact of Microfinance at the Individual Level in Albania, Particularly in the Region of Vlora and Fier

2018 ◽  
Vol 1 (1) ◽  
pp. p143
Author(s):  
Oltiana Muharremi ◽  
Edlira Luҫi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Way Of Life ◽  
Individual Level ◽  
Right To Development ◽  
Micro Insurance ◽  
The Individual ◽  
The Impact ◽  
Micro Credit

Microfinance is defined as the provision of financial services such as micro-credit, micro savings, and micro insurance for individuals with low income. Although access to micro credit is seen as a right to have credit, it rather represents a right to development and economic initiatives that could change the borrower’s way of life. The purpose of this article is to examine the impact of microfinance loans in improving the living conditions of borrowers. This study is based on an empirical investigation of 384 structured questionnaires directed at microfinance institutions in the regions of Vlore and Fier, Albania.

Micro-Finance as a Triggering Mechanism for Empowering Women’s Entrepreneurship in Sri Lanka

2021 ◽  
Vol 9 (2) ◽  
pp. 70-86
Author(s):  
Ayoma Sumanasiri ◽  
Prabhavi Chandrarathna
Keyword(s):  
Sri Lanka ◽  
Rural Areas ◽  
Financial Services ◽  
Entrepreneurial Success ◽  
Urban Sector ◽  
Women’S Entrepreneurship ◽  
Micro Insurance ◽  
Women's Entrepreneurship ◽  
The Impact ◽  
Micro Credit

The Micro-Finance sector has been identified as one of the main sectors that contributes to the eradication of poverty and to empowering women in developing countries. Women’s Entrepreneurship is considered an emerging trend among nations and contributes to the development of a country. It is also identified as an important means to end poverty and therefore, female empowerment through entrepreneurship has been well recognized. Micro-finance enables women’s entrepreneurial success; however, the context of the urban sector has not been well examined in the literature since most scholars perceive that poverty is mainly confined to the rural areas of a country. There are many services provided by the Micro- Finance sector. However, it is vital to identify their impact on Women’s Entrepreneurial success, particularly in the urban sector of the country. Accordingly, this study focuses on examining the impact of Micro-Finance, which includes Micro-Credit, Micro-Savings and Micro-Insurance, on Women’s Entrepreneurial success in Sri Lanka, specifically in the Colombo district. 240 women entrepreneurs who have obtained micro financial services in the Colombo district were used as the sample of this study. In order to arrive at a conclusion regarding the relationship between micro-credit, micro-savings, micro-insurance and entrepreneurial success, a 5-point Likert scale questionnaire has been used. The required data were collected by distributing the questionnaire through Google Forms. The statistical software package SPSS was used to analyze the collected data. It was identified that all the measurement items under Micro-Credit, Micro-Savings and Micro- Insurance exhibit significant relationships with Women’s entrepreneurship in the Colombo District, and therefore, all the hypotheses were accepted. Recommendations are provided to further enhance female presence and success in entrepreneurship in Sri Lanka.

Consumption switch at haste: insights from Indian low-income customers for adopting Fintech services due to the pandemic

2020 ◽  
Vol 8 (2) ◽  
pp. 197-218
Author(s):  
Soniya Billore ◽  
Gautam Billore
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Developing Economies ◽  
Financial Behavior ◽  
Future Research ◽  
Preventive Strategies ◽  
Product Adoption ◽  
The World ◽  
Managerial Implications ◽  
The Impact

The Covid-19 pandemic has created an environment of uncertainty, stress and financial vulnerability. As countries all over the world adopted preventive strategies ranging from voluntary isolations to stringent lockdowns, people and businesses were required to adjust their dispositions to the new normal resulting in new behaviors. The customer behaviour in financial services was also impacted and especially in developing economies as people were required to move to digital financial platforms at haste. In recent times, Fintech services are on a steady rise globally but their presence in the emerging markets is in a nascent stage and adoption by the low-income segment customers has largely been elusive. Much work is required to understand the needs of this customer cohort to identify factors for product adoption. This study investigates the impact on financial behavior among low-income segment customers for Fintech services due to the pandemic. By testing a set of hypotheses regarding inclination to adopt Fintech the study presents prominent antecedents such as fear, social influence, awareness and trust that led to positive product adoption. The study discusses the theoretical and managerial implications of the study and presents direction for future research.

scholarly journals The impact of women’s co-operative in a rural area in achieving Sustainable Development Goals (SDGs)

2021 ◽  
Vol 34 (1) ◽  
pp. 1
Author(s):  
Rustinsyah Rustinsyah ◽  
Pudjio Santoso ◽  
Nurul Ratna Sari
Keyword(s):  
Sustainable Development ◽  
Low Income ◽  
Rural Areas ◽  
Informal Education ◽  
Sustainable Development Goals ◽  
Provincial Government ◽  
Poor People ◽  
Income Family ◽  
Development Goals ◽  
The Impact

One of the strategies to address the issue of poverty in rural areas is by empowering women. East Java provincial government, Indonesia, has allocated grants for women’s co-operatives in rural areas since 2015, in the same year of the Sustainable Development Goals (SDGs) launch. This study describes the pattern of credit use in the women’s co-operative and its impact on low-income family livelihoods. The research was conducted at two women’s co-operatives in Plumpang District, Tuban Regency, Indonesia, from October 2017 to May 2018 using the qualitative approach. The data were collected through observation, in-depth interviews, focus group discussion, and survey about the co-operative members’ credit use. This study found that the co-operative members used the loans for daily needs, tuition fees, agricultural activities, and non-farming economic activities. The co-operative has increased children’s participation in low-income family informal education and strengthens social capital among poor people in rural areas; however, the co-operative still cannot cut the chain between low-income families and moneylenders the village. Consequently, further development of co-operatives in terms of quality and quantity is necessary for achieving the SDGs.

scholarly journals REVIEW OF MICROFINANCE AND WOMEN EMPOWERMENT IN ETHIOPIA

2017 ◽  
Vol 2 (6) ◽  
pp. 1
Author(s):  
Temesgen Kabeta
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Positive Impact ◽  
Living Standard ◽  
Poor People ◽  
Women Empowerment ◽  
Political Empowerment ◽  
Lack Of Information ◽  
Microfinance Institution ◽  
Information Work

Purpose: The purpose of this study was to review the role of microfinance and empowering women in Ethiopia Findings: According to findings of different authors microfinance is providing financial services to unemployed and low income individuals or groups who would have no access to formal banking services. It has positive impact on the living standard of the poor people in particular and alleviating poverty in their household in general. It is not only undermining poverty in the country, but also empowering women through surviving and making their life prosperous with dignity and self reliance by providing financial services. And also Ethiopian Microfinance is facing different challenges in empowering such as lack of collateral assets, lack of information, work burden, production failures, verbal abuse, lack of infrastructure, low institutional capacity and opportunities of women in microfinance are providing startup capital, women empowerment, poverty eradication, social and political empowerment, improved saving skills and the above challenges listed should be take consideration by government and concerned body as well as problem solving study must be conducted.Unique contribution to theory, practice and policy: It is better when countries microfinance would be more diversified its services to poor categories of the women. Infrastructural facilities must be fulfilled for microfinance institution to empower women

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