An Impact of Islamic Microfinance on women borrower’s Happiness: A Psychological and Economic Theoretical perspective in Southern Punjab, Pakistan (original) (raw)
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Islamic microfinance and household welfare nexus: empirical investigation from Pakistan
Journal of Global Entrepreneurship Research
Many approaches and tools have been utilized throughout the globe by public and private sector organizations to curtail the deprivations and enhance welfare of the poor. Islamic Microfinance is one of them and is rapidly getting popular in Muslims as well as non-Muslims majority population countries. This study was conducted to gauge the impact of Islamic microfinance on the household welfare of the target clients by observing its impact on health, education, income, expenditures and assets of the poor who took loan from Islamic Microfinance institutions (IMFIs). Study is based on primary data and assessment was made rendering pre and post project approach by employing paired sample t-test and Regressionanalysis as statistical tools. Respondents were selected from three microfinance institutions, namely Akhuwat Foundation, Farz Foundation and NAYMET. Results delineate statistically significant differences in Pre and Post borrowing scenarios in the welfare indicators of the target households. It has been observed that borrowing from Islamic Microfinance institutions has not only significantly raised monthly income; expenditures on food, education and health; and incremented households' assetsbut also surprisingly raised borrowed amount of loan which negatively affected income. This requires some further investigation and it is recommended that practitioners and policy makers must keep IMF on its top agenda to enhanceliving standards of the poor in developing countries.
The approach of giving Micro-credit has been reported as appropriate in addressing the basic needs of the poor, yet other components of Micro-credit such as Micro-saving and Microinsurance have received minimal study despite being crucial to social cohesion of small groups, communities, or societies. The main objective of this study is to explore the conceptual framework on the relationship between the products of Islamic Micro-finance and the Clients Wellbeing in the perspective of a service provider. The study identifies different products used to develop entrepreneurial skills leading to individual's personal development, increased productivity and income, and participation in economic and social life. The methodology of this study is quantitative research approach that seek responses from the service provider. The perspective of the Clients through impact assessments have been used in previous studies but the challenge with that methodology has been to demonstrate the causality of Clients'
Islamic microfinance programs have been used, for some time in Bangladesh, as an instrument to empower women and fight poverty. Women are specifically targeted by Islamic microfinance under the rural development scheme of Islami Bank Bangladesh Limited (IBBL), which provides interest-free-loans and many other benefits to the women groups involved. The main aim of this paper is twofold: firstly, to check for a positive relationship between Islamic microfinance and the socio-economic welfare of women and secondly, to explore the perspective in which Islamic microfinance packages function in Bangladesh and how the system of their performance can be enhanced. The main result of this study shows that the growth in women's revenues and resources plays an important role in improving women's financial freedom and sense of self-possession. However, a significant policy lesson from this study is that, it is essential to redirect Islamic microfinance to more sectors and more beneficiaries, in order to spread its benefits in the developmental activities, which will drive the contribution towards the wellbeing of the recipients and toward the socio-economic development of the country, in the long-run.
Role of Islamic Microfinance in Poverty Alleviation in Pakistan: An Empirical Approach
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2014
After 2008 world economic crises, banks and other financial institutes move towards Islamic financing not only in Muslims countries but also in non-Muslim countries of the world. In view of this, some micro financial institutions also introduce Islamic micro financing products in Pakistan. The present study was conducted to analyze the role of Islamic microfinance to alleviate poverty in Pakistan its impacts, people satisfaction level and assess the future of it in Pakistan. An Empirical approach has been adopted due to lack of knowledge to clients about products, technical terms, lack of time, and we come to know the changing improvement in the eyes of those people who directly involve in this system. Questionnaire was used as a tool for data collection. The qualitative data was quantified and chi-square test was applied to test the association of attributes by 5% level of significance. Our analysis concluded that Islamic microfinance playing an important role to improve the living standard, per capita income, awareness level (Educational level), ethical values, profitability, sustainability, infrastructure position, employment level in the society, helpful to control the inflation and unequal distribution of wealth. People are more interested due to religious prospective and prohibition of riba in Islam as well as in Christianity but there should be proper regularity authority to control over it in order to get fruitful results through an implementable model.
Microfinance and Its Contribution towards Women Empowerment: A case-study on Pakistan
Developing Country Studies, 2015
This paper explores the fact that how microfinance has contributed in the well-being and empowerment of women. AHP and factor analysis is used to screen out variables and then further their indexes are formulated. Then linear regression is applied. This study reveals the fact that microfinance has contributed to the well-being as well as empowerment of women. After participating in Microfinance program, now women are more involved in major household purchases, their ability to make small purchases increases, their increased participation in child related decisions like their education, their marriages etc., they are more respected by their husbands as they have started serving as an input in the overall household income, their tensions have been decreased and their survival have become easier leading to the well-being of the household. The physical mobility of women and the managerial control over the loan that are on the women's name have also been increases.
The present study aimed to examine improvements in the quality of life of women utilizing microfinance in urban Lahore, Pakistan. Random sampling was used to identify 5 microfinance providers in the region, and at a second stage of the study, quota sampling was used to interview 149 women users from microfinance site offices. A questionnaire was developed to measure quality of life in four categories: economic, family, health, and decision-making ability. Data was analyzed through the mixed methods approach of reporting descriptive statistics with user comments and use of multivariate regression analysis. Findings reveal that majority women users of microfinance are poor, illiterate, and employed as unskilled labor. Of significance is that some non-economic variables of quality of life were evidenced to improve after loan-taking. Multivariate logistic regression was performed to obtain an odds ratio of relationships between loan portfolio characteristics and improved quality of life. It was evidenced that group borrowing, use of loan for self, not taking loan repayment assistance from household members, attending monthly meetings, and receiving skill and development training all displayed higher odds of improved quality of life in women users. It is recommended that microfinance service provision should not be limited to financial services and should include urgent and compulsory social development features for women clients.
Influence of Microfinance and Empowerment on Satisfaction: Case Study of Pakistan
Studies in Business and Economics
The purpose of this study is to evaluate the influence of women empowerment, microfinance involvement, and loan size on women satisfaction. To achieve the objectives through simple random sampling technique the cross-sectional was collected from 372 borrowers' and 372 nonborrowers' women's through questionnaire and later multinomial logistic regression was applied. The findings revealed and support the theory of adoption, which demonstrates that income increases satisfaction. Microfinance is a kind of money, which involves borrowers in small business and enables them to have money through doing businesses that increase borrowers' women satisfaction compare to non-borrower's women. More empowered women is more satisfied with life. Present study also found that the effect of microfinance involvement on women's satisfaction depends on their empowerment In the light of findings this study recommends that future researchers can examine the same model in the different culture. This study contributes theoretically, practically and politically.
Turkish Journal of Islamic Economics (TUJISE) , 2016
This paper examines credit comfortability and the role of microfinance, based on a field study which determines the perceptions of Pakistani people regarding conventional (interest based) and Islamic (interest free) microfinance. Conventional microfinance is not naïve in poverty alleviation but an in-depth analysis is needed to assess its success in poverty hit countries like Pakistan. The goals of poverty alleviation through microfinance in Pakistan have not fully achieved as majority of population have been living at below poverty line for many years. The primary data has collected through questionnaire with street intercept method Özet Bu makale Pakistan'daki insanların ananevi (faizli) ve İslami mikro finans (faizsiz) konusundaki algılarını araştıran bir saha çalışmasına dayanarak kredi yardımı ve mikro finansın rolünü incelemektedir. Ananevi mikro finans fakirliği azaltma konusunda kusursuz değildir ve Pakistan gibi fakirliğin vurduğu ülkelerdeki başarısı derinlemesine incelenmelidir. Pakistan'da nüfusun ekseriyeti yıllardır fakirlik eşiğinin altında yaşadığından mikro finans ile fakirliği azaltma hedefleri tam anlamıyla gerçekleşmemiştir. Temel veri seti, Temmuz-Ekim 2014 arasında Pakistan'in Karaçi şehrinde rassal yüzyüze anket metoduyla toplanmıştır.
Do Islamic Microfinance Practise Descrease the Level of Three Aspects of Poverty
IQTISHADIA, 2019
Islamic microfinance institutions such as Baitu Tamkin is one of Koperasi Syariah at Lombok Timur practising islamic value. In practising islamic value, Baitu Tamkin insert this value in line with three aspect including commercial finance, social aspect, and spiritual awareness. But the evaluation of this islamic microfinance practise has not been conducted yet. Therefor we conducted a research to evaluate the curent impact of this program wheter there was improvement and how the conditions of poverty in the member self before and after taking part in empowerment programs on Baitut Tamkin. Poverty condition that we observed not only financial aspect but also social and spiritual aspect. This research used parametric including Multiple Linear regression, a simple Linear Regression, t-test and non parametric test using Wilcoxon test. We conclude that the level of poverty at local region decreased at three aspects but with various condition. First, the islamic commercial financing...
IMPACT OF ISLAMIC MICROFINANCE ON SOCIO-ECONOMIC OF WOMEN BURAO DISTRICT SOMALILAND.
IJSER, 2022
No progress was achieved by a country without considering the active participation of its women in the economic and social sectors. Microfinance was an imperative device used by microfinance institutions (MFIs) to reduce poverty through the promotion of women's livelihood. The purpose of the study was to examine the impact of Islamic microfinance on the socioeconomic status of poor women. In a cross-sectional survey; primary data was collected from 175 women with SMEs from Burao district, Somaliland. Decision-making; education for children, women's access to social media, and economics were four dimensions measured relating to the socioeconomic status of women. Found microfinance had a significant positive impact throughout thirteen indicators of socioeconomic P (0.000). The performance of SMEs was mediating factor between microfinance and socioeconomic. Further studies on clients' attitudes toward micro-financing as well as the behavior of MFIs were recommended.