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 Social Versus Financial Performance of Microfinance: Bangladesh Perspective

2018 ◽  
Vol 10 (3) ◽  
pp. 263
Author(s):  
Mohammad Aslam ◽  
Senthil Kumar ◽  
Shahryar Sorooshian
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Financial Institution ◽  
Panel Data Analysis ◽  
Poor People ◽  
Financial Sustainability ◽  
The Poor ◽  
Social Objective ◽  
The Relationship

Microfinance is a tool designed for poverty alleviation by providing financial services more specifically small credit to the poor household for income generating activities. One of the better ways to help poor people for poverty alleviation is through giving them financial services that cannot be done in traditional banking system. However, there is a big question whether it is possible to provide those services for a financial institution without being sustainable financially. How far it can go with free lunch that is depending on donors’ fund. These two patterns place microfinance at the intersection. One may wonder whether the microfinance compromises a trade-off between serving the poor as social objective and attaining financial sustainability as financial objective. If microfinance institute wishes to get financial sustainability through profit maximization rather ignoring intended social objective of alleviating poverty, than it loses its momentum and becomes like other traditional financial institute. Fulfilling social objective with financial sustainability will be the optimum outcome of microfinance. Microfinance has been pioneered primarily in Bangladesh and later replicated in rest of the world. By this time, over 33 million of clients are being served with various financial and non-financial services by over 700 registered microfinance institute in Bangladesh. This study intent to measure the social outreach versus financial sustainability of microfinance institute in Bangladesh through panel data analysis. To do this, we have analyzed the relationship between financial performance and depth of outreach of top 20 microfinance institutes of Bangladesh from 2015 to 2017. Our results show that the relationship is positive or neutral in some cases. Therefore, microfinance in Bangladesh has been attaining both social and financial objectives and there appears no mission drift.

scholarly journals PROGRESS OF FINANCIAL INCLUSION THROUGH FIPs OF SCHEDULED COMMERCIAL BANKS

2017 ◽  
Vol 5 (8) ◽  
pp. 146-157
Author(s):  
Mohana Krishna Irrinki ◽  
Kuberudu Burlakanti
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Banking Sector ◽  
Credit Cards ◽  
Vital Role ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Continuous Growth ◽  
Low Income Groups ◽  
Bank Accounts

All the stakeholders of the economy had identified the need and importance of financial inclusion in the overall development of any country. Banking sector plays a very vital role in the success of financial inclusion. Government and RBI had formulated various programs, schemes and financial services for the financial betterment of the low income groups. Various initiations were taken in implementing financial inclusion and banks were asked to set self-regulated targets through financial inclusion plans through which the unbanked villages across the country were assigned to various banks and these banks were asked to bring all the unbanked segments into the banking fold. The paper aims at the evaluation of financial inclusion through the various parameters considered for the growth of financial inclusion. The banks through the efforts of their branches and Business Correspondents have seen the continuous growth in opening the bank accounts, issue of Kisan Credit Cards & General Credit Cards and the volume and value of transactions in the bank accounts. Financial Inclusion Plans of the banks are helping a lot in moving towards inclusive growth.

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 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

scholarly journals INTEREST FREE MICROFINANCE: A GATEWAY OF FINANCIAL INCLUSION FOR KERALA

2016 ◽  
Vol 4 (4SE) ◽  
pp. 51-58
Author(s):  
Fazal Muhammed
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Household Income ◽  
Poverty Alleviation ◽  
Development Process ◽  
Financial System ◽  
Economic Security ◽  
Local Economies ◽  
Goods And Services ◽  
The Poor

Microfinance is a powerful poverty alleviation tool. It implies provision of financial services to poor and low-income people whose low economic standing excludes them from formal financial systems. Access to services such as, credit, venture capital, savings, insurance, remittance is provided on a micro-scale enabling participation of those with severely limited financial means. The provision of financial services to the poor helps to increase household income and economic security, build assets and reduce vulnerability; creates demand for other goods and services; and stimulates local economies. A large number of studies on poverty however, indicate that exclusion of the poor from the financial system is a major factor contributing to their inability to participate in the development process. In a typical developing economy the formal financial system serves no more than twenty to thirty percent of the population. The vast majority of those who are excluded are poor.

scholarly journals A look-back to the relationship between economic growth and social equality in Vietnam thirty years after the renovation

2014 ◽  
Vol 17 (2) ◽  
pp. 95-104
Author(s):  
Tinh Phu Tran Do ◽  
Duyen My Pham ◽  
Huyen Thanh Nguyen ◽  
Nen Van Nguyen
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Growth Process ◽  
Social Equity ◽  
Living Standard ◽  
Health Care Education ◽  
Social Equality ◽  
Look Back ◽  
The Relationship

This paper focuses on analyzing the achievements and limitations of Vietnam in the implementation of social equity in the economic growth process after the renovation in 1986. Economic growth generated capital to invest in social welfare, more income and opportunities for people to enjoy a prosperous life. However, besides above achievements, there still remain many limitations, such as: unsustainable development in income, living standard and poverty alleviation; low quality of health care, education and entertainment services. Based on the analysis of the causes of the limitations, this paper proposed the orientations for solving the relationship between the economic growth and social equality in Vietnam in the future.

IMPACTS OF FINANCIAL INCLUSION ON POVERTY AND INCOME INEQUALITY IN DEVELOPING ASIA

2021 ◽  
pp. 1-17
Author(s):  
WARATTAYA CHINNAKUM
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Low Income ◽  
Financial Services ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Principal Component ◽  
Financial Inclusion ◽  
Poor Households ◽  
Low Income Groups

This study investigates the impacts of financial inclusion on poverty and income inequality in 27 developing countries in Asia during 2004–2019 based on a composite financial inclusion index (FII) constructed using principal component analysis (PCA). The generalized method of moments (GMM) was employed for the estimation. The results show that financial inclusion can influence the reduction in both poverty and income inequality. The empirical findings also reveal the contribution of such control variables as economic growth in decreasing income disparity and trade openness in helping improve the standard of living of poor households despite its tendency to co-vary with income inequality. The present empirical evidence supporting the role of financial inclusion in reducing poverty and income inequality in developing countries has led to a policy implication that financial sector development should focus on the availability, usage, and depth of credit to cover all poor households or low-income groups to help improve their access to financial services, enable them to increase their income, and reduce the income gap between poor and rich households.

FINANCIAL INCLUSION THROUGH MICRO FINANCE

2021 ◽  
pp. 1-4
Author(s):  
P. Nagarajan
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Rural Areas ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Poor People ◽  
Resource Base ◽  
Income Groups ◽  
Low Income Groups

Finance has become an essential part of an economy for development of the society as well as economy of nation. World leaders are embracing nancial inclusion at an accelerating pace, because they know that an inclusive nancial system that responsibly reaches all citizens is an important ingredient for social and economic progress for emerging markets and developing countries. Despite the political tailwind, half of the working-age adults globally – 2.5 billion people – remain excluded from formal nancial services. Instead, they have to rely on the age-old informal mechanisms of the moneylender or pawnbroker for credit or the rotating savings club and vulnerable livestock for savings. The pandemic has had a momentous impact on economies and societies around the world. At the same time, it has shown that, with the right approach, it is possible to protect and safeguard the economy. . Through Financial inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of appropriate nancial services at an affordable cost, on timely basis to vulnerable groups such as low income groups and weaker section who lack access to even the most basic banking services. It helps in economic development as it widens the resource base of the nancial system by developing a culture of savings among large segment of rural population. Further, nancial inclusion protects their nancial wealth and other resources in exigent circumstances by bringing low income groups within the perimeter of formal banking sector. Financial inclusion engages in including poor people in the formal banking industry with the intention of securing their minimal nances for future purposes. Micronance has become a medium of extending nancial services to unbanked sections of population. Micronance is banking the unbankables, bringing credit, savings and other essential nancial services within the reach of millions of people who are too poor to be served by regular banks, in most cases because they are unable to offer sufcient collateral. In a country like India with almost 30% (more than 360 million) people still below poverty line and according to latest census gures, more than 70% or 840 million people living in rural areas with little or no access to formal banking and other nancial services, micronance has a big role to play in order to bridge this gap. The Micro Finance Institutions occupies key position in nancial inclusion through micro nance where the exclusion. In developing countries, the growth of micronance institutions (MFIs) which specically target low income individuals are viewed as potentially useful for promotion of nancial inclusion. Even though MFIs at present, mainly offer only credit products; as they grow, they are likely to expand their product range to include other nancial services.

‘Teachers know best’: low-income families and the politics of home‐school relations in Singapore

2020 ◽  
Vol 9 (1) ◽  
pp. 23-40
Author(s):  
Charleen Chiong
Keyword(s):  
Low Income ◽  
The State ◽  
Home School ◽  
Power Dynamics ◽  
Children’S Wellbeing ◽  
Low Income Groups ◽  
Anglo American ◽  
Low Income Families ◽  
Home And School ◽  
Depth Interviews

Much Anglo-American and European literature describes relations between low-income groups and public sector institutions as characterised by disenfranchisement and distance ‐ particularly within critiques of neoliberal policies and imaginaries. This article draws on in-depth interviews with 12 low-income families to explore why there are unexpectedly close home‐school relations in Singapore. Three reasons grounded in families’ perceptions of the state and school are elucidated: (1) competence ‐ of the Singapore state and its teachers in preparing children for success; (2) care ‐ of the state and teachers towards children’s wellbeing; and (3) communication ‐ frequent dialogue resulting in collaborative childrearing approaches between home and school. However, while these can contribute to close, collaborative home‐school relations, the wider politics and power dynamics of these relations ‐ as well as their effects on families’ lives ‐ is worth further unpacking.

scholarly journals Barriers to Access to and Usage of Financial Services in Ethiopia

2017 ◽  
Vol 7 (1) ◽  
pp. 139 ◽  
Author(s):  
K. Sambasiva Rao ◽  
Andualem Ufo Baza
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Institution ◽  
Fixed Cost ◽  
Physical Point ◽  
Fixed Charges ◽  
Barriers To Access ◽  
Financial Exclusion ◽  
Low Income Groups ◽  
Regulatory Barriers

We study the interplay between financial exclusion and barriers to inclusion. Our model shows that financially excluded individuals are exposed to barriers to inclusion that prohibit their access to financial services even in absence of voluntary exclusion. We call these situation “involuntary exclusion,” since people lack access to and use of financial services due to barriers to inclusion that are otherwise overlooked social exclusion. We show that barriers to inclusion are more likely to occur when lack of access to physical point of financial services, poverty, lack of credit, prohibitive fixed cost of transacting at financial institution, legal and regulatory barriers and low competition among financial institutions. We analyze financial exclusion as a function of barriers to inclusion, examining the trade-off between unbanked adults and barriers to banking. We verify the model’s prediction that financial exclusion is more likely to occur among low income individuals in which assets holdings are low, as well as individuals who are too far away from physical point of access and those individuals who cannot afford bank fixed charges, than others. We also show that individuals are more likely to be financially excluded (relative to others) in low income groups in which barriers to inclusion are more frequent. 

Sign in / Sign up

Export Citation Format

Share Document