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A qualitative approach to determine the problems and challenges faced by microfinance institution with reference to poverty alleviation: A case of district Bahawal Nagar, Punjab, Pakistan

Author

Listed:
  • Zahid Iqbal

    (PhD Scholar, Hailey College of Commerce, University of the Punjab, Lahore, Punjab, Pakistan,)

  • Rai Imtiaz Hussain

    (Lecturer, Department of Management Sciences, University of Okara, Okara, Punjab, Pakistan,)

  • Muhammad Ali

    (I.B.A, University of the Punjab, Lahore, Punjab, Pakistan,)

  • Hamna Sohail

    (Visiting Lecturer, University of Okara, Okara, Punjab, Pakistan)

  • Hafiz Fawad Ali

    (Institute of Business Administration, University of the Punjab, Lahore, Punjab, Pakistan.)

Abstract

This study aims are to identify the factors that create hurdle in poverty reduction with reference to loan provided by the Microfinance Institutions (MFIs) to the destitute people of District Bahawalnagar. In this study questions regarding Utilization of Loan for Immediate Needs (ULIM), Miss Match of Loan Amount (MMLA), Customer Capacity for Utilizing Loan (CCUL) and Utilization of Loan by Addict Customer (ULAC) were asked to the respondent through face to face interview. After than all interview was transcript in MS Excel and important themes were identified with their percentage of frequencies. In this study 12 important themes through four questions were identified. Important themes that are identified through ULIN is the Spending loan amount on construction, marriages and health & education, whereas the compatibility of loan amount, high interest rate and high processing fee are the themes that are derived from MMLA. Another question that is CCLU, through this lack of business education, business experience and business skill were derived and taking loan by drugs addicts, gambler and using loan on recreational goods were identified through ULAC questions. All these factors will be shared with all MFIs that are working for poverty alleviation so that a milestone of poverty elimination will be achieved by controlling these factors through proper planning and formulating policies regarding these factors.

Suggested Citation

  • Zahid Iqbal & Rai Imtiaz Hussain & Muhammad Ali & Hamna Sohail & Hafiz Fawad Ali, 2020. "A qualitative approach to determine the problems and challenges faced by microfinance institution with reference to poverty alleviation: A case of district Bahawal Nagar, Punjab, Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 192-197.
    • Handle: RePEc:eco:journ1:2020-04-23
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    References listed on IDEAS

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    1. Godquin, Marie, 2004. "Microfinance Repayment Performance in Bangladesh: How to Improve the Allocation of Loans by MFIs," World Development, Elsevier, vol. 32(11), pages 1909-1926, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Microfinance Institutions; Poverty Alleviation; Pakistan;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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