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

Zahid Iqbal, Rai Imtiaz Hussain, Muhammad Ali, Hamna Sohail and Hafiz Fawad Ali
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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.

International Journal of Economics and Financial Issues, 2020, vol. 10, issue 4, 192-197

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.

Keywords: Microfinance Institutions; Poverty Alleviation; Pakistan (search for similar items in EconPapers)
JEL-codes: G21 I32 (search for similar items in EconPapers)
Date: 2020
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