Impact of microcredit on income and employment of self‐help group members in Punjab: Does credit size matter?

Kapila, Munish; Kalia, Prateek

doi:10.1111/issj.12311

Cited by 2 publications

(2 citation statements)

References 51 publications

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“…The results presented in Table 5 show that the economic condition of clients after microfinance intervention has significantly improved economic conditions of clients (Bhatt & Tang, 2001;Dhungana, 2018b;Korth et al, 2012) such as microbusiness creation (Alhassan et al, 2022;Tahmasebi & Askaribezayeh, 2021), income level (Amarnani & Amarnani, 2015;Dhungana, 2018a;Kapila & Kalia, 2022), saving habits (Chomen, 2021;Aruna & Jyothirmayi, 2011), productive investment (Bhatt & Tang, 2001;Dhungana, 2015;Korth et al, 2012), consumption, and capital expenditures (Dhungana & Chapagain, 2019;Parwez & Patel, 2022;Raghunathan et al, 2022).…”

Section: Inferential Test On Perceived Impact Of Microfinance On Live...mentioning

confidence: 99%

Perceived Impact of Microfinance on Livelihood Improvement in Kaski District of Nepal

Dhungana

2023

Interdis. J. Innov. Res. Nep. Acad.

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This paper examines the perceived impact of microfinance on livelihood improvement in Kaski district of Nepal. The study is based on a primary survey limited to five MFIs working in rural parts of Kaski district. The impact of microfinance services on people's livelihoods was examined using a descriptive and explanatory research including paired sample t-test, and Wilcoxon signed-rank test The livelihood status of the clients has been measured in terms of economic (microbusiness creation, income level, saving habits, productive investment, consumption, and capital expenditures) and social condition (educational status, health status, women empowerment, and social networking) of the clients after microfinance intervention. The researcher randomly selected 150 clients involved in microfinance institutions for the last three or more years. Microfinance significantly affects the livelihood and raises standards of living. The study finds a significant impact of microfinance on the livelihood improvement of poor and marginalized people. Microfinance interventions have significantly improved clients' economic condition, including microbusiness creation, income level, saving habits, productive investment, consumption, and capital expenditures. The social conditions, particularly educational status, health status, women empowerment, and social networking of clients, have significantly improved. Microfinance can be useful for fostering economic growth and enhancing the lives of low-income people and communities, even though its efficacy is disputed. The regulatory authority should develop sound financial and social outreach efficiencies of microfinance institutions to ensure both the welfare of clients and the sustainability of micro institutions.

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Section: Inferential Test On Perceived Impact Of Microfinance On Live...mentioning

confidence: 99%

Perceived Impact of Microfinance on Livelihood Improvement in Kaski District of Nepal

Dhungana

2023

Interdis. J. Innov. Res. Nep. Acad.

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“…The changes in clients' income levels result from the productive engagement of microcredit. Most of the studies claimed a strong effect of micro-credit in generating revenue and employment (Alam et al, 2015;Al-Mamun et al, 2014;Mustafa et al, 2020;Kapila & Kalia, 2022;Alemu & Ganewo, 2022).…”

Section: Effects On Income Level Of Clientsmentioning

confidence: 99%

Effects of Microfinance Services on Economic Status Improvement: A Case of SKBBL, Pokhara, Nepal

Dhungana

2022

QJMSS

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Background: Microfinance is an effective tool for financial inclusion and poverty reduction in developing countries like Nepal. It delivers financial and non-financial services to unbanked people from formal financial services. Microfinance services support people from weaker sections of society with a view of socio-economic transformation. Low access to finance is a problem for poor and marginalized people. Microfinance institutions provide microcredit to unbanked people without physical collateral. Thus they help people from lower-income groups improve their livelihood through productive investment. Objectives: This paper aims to examine the effects of microfinance services on the economic status of clients' status with references to Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL), Pokhara, Nepal. Methods: The research presents the findings of data collected through a survey research design in the Kaski district of Nepal. The researchers administered the survey questionnaire to 235 clients of SKBBL microfinance institutions involved in the programme for the last five or more years. We used a stratified random sampling technique to collect the data. The sample population comprised 70 from a scheduled caste (Dalit), 75 from ethnic groups, and 90 from upper castes. Both descriptive and inferential statistics have been used to analyze the data. The paired sample t-test has been used to examine the effects of microfinance intervention on occupational status, income level, consumption expenditure, capital expenditure, and monthly savings of the clients. Results: The results show that microfinance has contributed a significant role. It has enabled people from lower income groups to access microcredit and encourage productive investment that facilitates productive investment and economic transformation. -The result derived from paired sample t-test finds the positive effects of microfinance intervention on occupational status, income level, consumption, capital expenditure, and saving habits. Conclusion: This study concludes that role of microcredit is significant in enhancing the clients' economic status. Microfinance positively affects clients' earnings, savings, spending, asset accumulation, and occupational status. However, utilizing microcredit in productive sectors is necessary to empower the clients' economic status. The findings indicate that microfinance institutions must focus on effective microcredit applications to help create micro-businesses and improve the clients' livelihood status.

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Impact of microcredit on income and employment of self‐help group members in Punjab: Does credit size matter?

Cited by 2 publications

References 51 publications

Perceived Impact of Microfinance on Livelihood Improvement in Kaski District of Nepal

Perceived Impact of Microfinance on Livelihood Improvement in Kaski District of Nepal

Effects of Microfinance Services on Economic Status Improvement: A Case of SKBBL, Pokhara, Nepal

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