scholarly journals Performance of Microfinance Providers in Sindh, Pakistan: A Study of Formal and Informal Microfinance Institutes

2020 ◽  
Vol 16 (1) ◽  
pp. 151-170
Author(s):  
Ghazala Tunio ◽  
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Sampling Technique ◽  
Financial Information ◽  
Microfinance Institutions ◽  
Important Relationship ◽  
Sindh Province ◽  
The Government ◽  
The Interest Rate ◽  
Number Of Branches

This research aims to analyze the performance of microfinance providers of the Sindh province of Pakistan. For this purpose, the formal and informal microfinance institutes were selected. Data was gathered from a sample of 150 managers of microfinance banks and institutions. In this research, the random sampling technique is used to collect the data through questionnaires. The OLS regression model is employed to analyze the data. The results of this study show that the number of branches, and less number of defaulters significantly affect the performance of microfinance institutes in Sindh, Pakistan. Moreover, the total cost also has an important relationship with the performance of microfinance organizations in Sindh. However, the study finds the interest rate, and more diversified financial services to have no significant impact on the performance of microfinance organizations. Due to the lack of financial information of the microfinance institutions in Sindh, there is dearth of the research on the performance of microfinance institutions. Rather than using only the published financial information this study relies on the information provided by the managers of the microfinance providers for the analysis. The results of this study have implications for the well-functioning of microfinance institutes, and for the government to achieve the poverty alleviation objectives in Pakistan

scholarly journals Evaluating the Impact of Microfinance for Women in Albania

2016 ◽  
Vol 4 (2) ◽  
pp. 233
Author(s):  
Oltiana Muharremi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Social Influence ◽  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Empirical Investigation ◽  
Social Value ◽  
Microfinance Institutions ◽  
The Poor ◽  
The Impact ◽  
Micro Enterprises

<p class="Default"><em>Microfinance is defined as any activity involving the offering of financial services such as loans, savings and insurance to individuals with low income.</em><em> </em><em>Creating social value includes reducing poverty and having a better impact to improve living conditions through capital for micro-enterprises; insurance and savings deposits for reducing risk and boosting consumption. Worldwide microfinance actors promote access to basic financial services by developing new tools, a variety of products and the adoption of an integrated banking access.</em></p><p class="Default"><em>Initially, microfinance was largely gender neutral: it sought to provide credit to the poor who had no assets to pledge as collateral. It quickly emerged, however, that women invested their business profits in ways that would have a longer-lasting impact on their families and communities. Consequently women became fundamental to the success of the microfinance model as a poverty alleviation tool. The purpose of this article is to examine the impact of microfinance loans in improving the lives of women borrowers, as well as in strengthening their social influence and the microcredit impact in promoting savings. This study is based on an empirical investigation of 384 structured questionnaires and surveys directed at microfinance institutions and their clients in the regions of Vlore and Fier, Albania.</em></p>

scholarly journals Alleviating Poverty Through Islamic Microfinance: Factors and Measures of Financial Performance, and Roles of Islamic Values and Financial Policies

2019 ◽  
pp. 1266-1273
Author(s):  
Adhitya Ginanjar ◽  
Salina Kassim
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Financial Education ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Financial Policies ◽  
The Poor ◽  
Depth Interview ◽  
Rich Information ◽  
Islamic Microfinance

Indonesia has a strong presence of microfinance sector with the number of Islamic Microfinance Institutions (IMFIs) estimated to be around 5,000 currently. Microfinance is an effective tool in alleviating poverty in Indonesia due to the limited access to financial services by the poor who accounted for approximately 96 million Indonesians (or 37% of the total population), living on less than USD 1.90 a day. In the absence of collateral and steady income, the poor are considered too risky to be given credit facilities by the formal financial services providers and living in remote areas has also limited their access to formal financial services. This study aims to examine the poverty alleviation efforts from the perspective of the IMFIs in view of their direct involvement in the process and having rich information about financial issues facing the borrowers. The managers also understand about financial inclusion agenda as well as financial guidelines and regulations issued by the relevant authorities. A total of 34 managers of Baitulmaal Wa Tamwil (BMTs), which registered under the Sharia Cooperative Centre (INKOPSYAH) are taken as respondents from the Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK) areas. The first instrument was a survey questionnaire, and the second one was an in-depth interview to outline data related to the model design. The findings of this research are expected to contribute to better decision-making for the BMTs to further enhance its role in alleviating poverty. The findings also elaborate several dimensions to improving financial inclusion among the poor including providing financial services, implementing Islamic principles, significant policies, community-based framework concept and training financial education. This research highlights the need for a variety of strategies to warrant success of poverty alleviation efforts by BMT.

scholarly journals The Equity and Efficiency of Microfinance

2010 ◽  
Vol 3 (1) ◽  
pp. 11-17
Author(s):  
Mahazarin Kanga ◽  
Juhi Bansal ◽  
Siddharth Verma ◽  
Ishani Bandaranayake
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Social Benefits ◽  
Poor People ◽  
Microfinance Institutions ◽  
The Poor ◽  
Equity And Efficiency ◽  
Social Opportunities ◽  
The Common ◽  
Global Population

Banks are for people with money rather than for people without money. However, microfinance is banking for the unbankables. It brings credit, loan, savings and other essential financial services within the reach of millions of people who are too poor to be served by regular banks, i.e. almost 60-90% of the global population. It is one of the most intriguing features of financial economics today. In the aftermath of the 2006 Nobel Peace Prize being awarded to the Bangladeshi, Mohammed Yunus, who is a champion of the cause for microcredit, the common presumption has been that microfinance create s undeniable social benefits such as poverty alleviation and more equal social opportunities. Indeed, this is true to a large extent; however, less acknowledged are the problems that lurk behind this facade of ‘social service’. Donning the caps of economists, this pa per discusses the economic rationality of microfinance as an effective tool for achieving poverty alleviation. We ask the question on whether the theoretical objective of microfinance for ‘helping the poor’ is sullied in practice by rent seeking, profit seeking and corruption. We assess the fundamental economic model for the basis on which Microfinance Institutions (MFIs) provide loans to the poor and as whether the poor people eventually benefited from this financial innovation.

scholarly journals Dimensions of Women Empowerment Through Microfinance

2021 ◽  
Vol 5 (9) ◽  
pp. 41-43
Author(s):  
Rejoice Solomon* ◽  
Ranu Sharma
Keyword(s):  
Rural Women ◽  
Financial Services ◽  
Crucial Role ◽  
Poverty Alleviation ◽  
Women Empowerment ◽  
Microfinance Institutions ◽  
Self Help ◽  
Economic Background ◽  
The Needy ◽  
Self Help Group

Microfinance institutions’ plays a crucial role for the upliftment of rural women. Women are the key of a nation development. So in order to attain the development of a nation there is need to empower the women of our nation. Microfinance institutions have always seen as a tool of poverty alleviation as they provide the facility of financial services to the needy and the weaker section of the society without any collateral security. And it proved itself as a tool of poverty alleviation. Thus it also a vaccine for women empowerment. Empowerment of women can be done with the help of Self-Help-Group. Where 10-12 women form a group with same socio-economic background and they were trained, educated so they may uplift their family, their society and ultimately the nation as whole. The objective of this paper is to understand the different dimension of women empowerment with the help of microfinance. And from the study it was seen women should be psychologically, economically and Socially Empowered and it all comes with the help of microfinance. And microfinance proved that it a vaccine for the empowerment of women.

scholarly journals Stochastic model of microcredit interest rate in Morocco

2016 ◽  
Vol 6 (4) ◽  
pp. 268-273 ◽  
Author(s):  
Ghita Bennouna ◽  
Mohamed Tkiouat
Keyword(s):  
Interest Rate ◽  
Stochastic Model ◽  
Interest Rates ◽  
Low Income ◽  
Financial Services ◽  
Banking System ◽  
Well Being ◽  
Microfinance Institutions ◽  
Social Mission ◽  
The Interest Rate

Access to microcredit can have a beneficial effect on the well-being of low-income households excluded from the traditional banking system. It allows this population to receive affordable financial services to help them to meet their needs and to improve their living conditions. However to provide access to credit, microfinance institutions should ensure not only their social mission but also commercial and financial mission to enable the institution to perpetuate and become self-sufficient. To this end, MFIs (microfinance institutions) must apply an interest rate that covers their costs and risk, while generating profits, Also microentrepreneurs need, to this end, to ensure the profitability of their activities. This paper presents the microfinance sector in Morocco. It focuses then on the interest rate applied by the Moroccan microfinance institutions; it provides also a comparative study between Morocco and other comparable countries in terms of interest rates charged to borrowers. Finally, this article presents a stochastic model of the interest rate in microcredit built in random loan repayment periods and on a real example of the program of loans of microfinance institution in Morocco.

scholarly journals Factors affecting the marketing of livestock in South Omo Zone: The case of Hammer woreda

2020 ◽  
Vol 11 (2) ◽  
pp. 119-131
Author(s):  
Getachew Alene Chekol
Keyword(s):  
Poverty Alleviation ◽  
Sampling Technique ◽  
Systematic Sampling ◽  
Sales Volume ◽  
African Countries ◽  
Factors Affecting ◽  
Multi Stage ◽  
Livestock Marketing ◽  
South Omo ◽  
The Government

Pastoralism is important to the society for poverty alleviation, food security and economic growth. It is the backbone of many African countries’ economy, particularly Ethiopia. The main objective of this study was to investigate factors affecting the marketing of livestock in terms of sales volume in South Omo Zone: the case of Hammer woreda. From 35 potential pastoralist kebeles in the woreda, 3 kebeles were selected purposively. The multi-stage sampling technique and the proportional stratified sampling technique were used to select sample pastoralists from each stratum. A total of 388 pastoralists were selected by using the systematic sampling technique. The study identified that price, infrastructure, middlemen and promotional factors significantly affect livestock marketing. The findings of this study recommend that the government should formulate and implement appropriate market and pricing policies, disseminate market information in proper media and improve road networks to enhance the effectiveness of livestock marketing in the woreda.   Keywords: Infrastructure, livestock, marketing, price, promotion.

scholarly journals STRATEGI PENGEMBANGAN KOPERASI LEMBAGA KEUANGAN MIKRO AGRIBISNIS (LKM-A) GAPOKTAN SARI MAKMUR KECAMATAN METRO TIMUR KOTA METRO

2019 ◽  
Vol 7 (1) ◽  
pp. 83
Author(s):  
Aurora Afifah Yasmin ◽  
Dyah Aring Hepiana Lestari ◽  
Muhammad Irfan Affandi
Keyword(s):  
Financial Services ◽  
Financial Management ◽  
Legal Status ◽  
Microfinance Institutions ◽  
Analysis Method ◽  
Excellent Service ◽  
External Training ◽  
The Government ◽  
Accounting Software

This research aims to analyze the internal and external environment, arrange development strategies, and determine priority strategies of Microfinance Institutions Farmer Groups Sari Makmur Cooperative. This research isperforms a case study method. Respondents  were 13 people consist of organizers and members of the cooperative, expert, and  regulator.  Data analysis method used in this research was qualitative analysis method. The results showed that the main internal strengths of the cooperative were its legal status and registered status at the financial services authority.  The main weakness was the lack of awareness of members in the cooperative. Externally, cooperative faced major opportunity in the form of the need for easy and fast loan services and the main threat of increasing community living costs. The priority strategies that could be used in the development and sustainability of the cooperative microfinance were using accounting software for financial data processing to improve cooperative’s financial management, improving the quality of cooperative’s organizer and managers by providing internal training and engaging in external training conducted by the government or other institutions, and improving the excellent service to meet the needs of cooperative’s members.Key words: cooperative, microfinance, strategies

scholarly journals INFLUENCE OF COST OF CREDIT ON CONSUMER SATISFACTION: A CASE OF THE NIC BANK LIMITED

2017 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Christopher Mwangi ◽  
Dr. Paul Katuse
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Consumer Satisfaction ◽  
Sampling Technique ◽  
Primary Data ◽  
Infinite Population ◽  
Study Results ◽  
The Government ◽  
The Interest Rate

Purpose: The purpose of the study was to establish the influence of cost of credit on consumer satisfaction, a case of the NIC bank limited.Methodology: The descriptive survey research design was preferred for the study. The population of the study was over 10,000 credit card holders in NIC Bank. Snow balling sampling technique was appropriate for this study because credit card customers were not keen on cooperating because of the sensitivity of information gathered and only cooperated on referral from friends. Fishers’ formula was used for calculating the sample size of an infinite population which amounted to 384 but for the purpose of improving the response rate, the study added 16 more respondents to total up to 400. The study used primary data. The study used a questionnaire as the preferred data collection tool. Information was sorted, coded and input into the statistical package for social sciences (SPSS) for production of descriptive and inferential statistics. The results were presented using tables and pie charts to give a clear picture of the research findings.Results: Based on the findings, the study conclded that that credit card interest rate was competitive compared to other offerings in the market, the credit card interest rate is better than overdraft rates.  It was concluded that the credit card interest rate was affordable compared to shylock interest rates. Results led to the conclusion that the penalties were lower than those of competitors. Study results show that the credit card joining fee was affordable compared to other products, the credit card joining fee was lower than that of competitors. Results also led to the conclusion that the penalties were very high. Results also led to the conclusion that credit card interest rate were affordable compared to Sacco interest.Unique contribution to theory, practice and policy: Based on the findings, the study recommends that the Government should legalise the interest rate within the banks and make it affordable to the consumers. In addition the banks should lower the credit card joining fee as this will motivate more customers to join and therefore an additional benefit the banks.

scholarly journals Assessing the Determinants of Operational Self-Sufficiency of Microfinance Institutions (MFIs) in Afghanistan

2018 ◽  
pp. 31-48
Keyword(s):  
At Risk ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Microfinance Institutions ◽  
Economic Activities ◽  
Loan Portfolio ◽  
The Poor ◽  
Self Sufficiency ◽  
Significant Factors

Microfinance Institutions (MFIs) started providing financial services in Afghanistan since 2003 to take part in poverty alleviation and providing micro loans for the poor entrepreneurs enabling them to expand their economic activities. Since the inception, the Microfinance sector in Afghanistan experienced serious ups and downs and most of the MFIs collapsed and could not become sustainable. Therefore, the aim of this study is to assess the determinants of MFIs sustainability in Afghanistan. To best of researcher’s knowledge, yet, no quantitative researches have been done in the context of Afghanistan to assess the determinants of MFIs sustainability. Using 2SLS econometrics approach through STATA and Eviews, the data of 5 MFIs from 2004 to 2015 was used to assess the determinants of MFIs sustainability. The research’s findings reveal that number of offices, total gross loan portfolio, operational expense to gross loan portfolio and portfolio at risk are statistically significant factors which determine the operational self-Sufficiency of MFIs in Afghanistan. However, other finding of this research shows that ratio of deposit to loan and total expenses to assets have not significant impact on the operational Self-Sufficiency of MFIs in Afghanistan during the study period.

scholarly journals Analisis Dampak Kredit Usaha Rakyat pada Sektor Usaha Mikro terhadap Penanggulangan Kemiskinan di Kota Makassar

2020 ◽  
Vol 11 (1) ◽  
pp. 17-28
Author(s):  
Maria Ulfa ◽  
Mohammad Mulyadi
Keyword(s):  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Positive Impact ◽  
Sampling Technique ◽  
Research Problem ◽  
Community Empowerment ◽  
Purposive Sampling ◽  
Key Informant ◽  
The Government ◽  
The Impact

Community empowerment through micro-business development can be an instrument in poverty alleviation. The development of micro-businesses cannot take place by itself, therefore it needs to get financial support from the government. One form of government’s support is the people's business credit (kredit usaha rakyat - KUR) which until now has been running for more than ten years. The purpose of this study was: (1) To determine the impact of the KUR on the micro-business sector; and (2) To determine the impact of the development of micro-businesses on poverty reduction. The type of research used was descriptive with a qualitative approach. The sampling technique in this study was purposive sampling with a consideration that the informants were considered the most knowledgeable about the object of this research problem (key informants). The informants consisted of officials from the Makassar City Office of Cooperatives and SMEs, business actors, and community leaders. Based on the research conducted, it is known that the KUR has a positive impact on the development of micro-businesses in Makassar City and the development of micro-businesses has a positive impact on poverty alleviation.AbstrakPemberdayaan masyarakat melalui pengembangan usaha mikro dapat menjadi sebuah instrumen dalam penanggulangan kemiskinan. Pengembangan usaha mikro tidak dapat berjalan sendiri, karenanya perlu mendapat dukungan pembiayaan dari pemerintah. Salah satu bentuk dukungan pemerintah adalah kredit usaha rakyat (KUR) yang hingga saat ini telah berjalan selama lebih dari sepuluh tahun. Tujuan dari penelitian ini adalah: (1) Untuk mengetahui dampak KUR pada sektor usaha mikro; dan (2) Untuk mengetahui dampak pengembangan usaha mikro terhadap penanggulangan kemiskinan. Jenis penelitian yang digunakan adalah deskriptif dengan pendekatan kualitatif. Teknik pengambilan sampel pada penelitian ini menggunakan purposive sampling dengan pertimbangan bahwa narasumber atau informan dianggap paling tahu tentang objek permasalahan penelitian ini (key informant). Adapun informannya terdiri dari pejabat pada Dinas Koperasi dan UKM Kota Makassar, pelaku usaha, dan tokoh masyarakat. Berdasarkan penelitian diketahui bahwa KUR memiliki dampak positif terhadap pengembangan usaha mikro di Kota Makassar dan pengembangan usaha mikro memiliki dampak positif terhadap penanggulangan kemiskinan.

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