Factors Determining the Effective Role of Microfinance
Keywords:Household economics, Microfinance, Economic wellbeing, consumer protection, diversion of loan
The focus of this study is on the effectiveness of economic, social and
institutional factors in manipulating the role of microfinance. It is a primary
data research conducted in the Bahawalpur division, Pakistan. The sample
consists of 773 respondents, belonging to different microfinance providers
of Pakistan that are NRSP, AKHU, FMFB, KASHF, KB, NRSP-B, TMFB.
Data has been collected through face to face structured interviewing using a
questionnaire. It has been found that economic wellbeing and economic
empowerment of borrowers after availing microfinance is positively
affected by consumer protection, education of borrowers, experience,
business training, number of employed persons, length of membership,
relation to household head, area and family reaction to business activity but
negatively by diversion of loan, interest rate, age of the borrowers and
number of dependents.