The Impact of Microfinance on Poverty Reduction: Empirical Evidence from Malaysian Perspective

Samer, Sayed; Majid, Izaidin Abdul; Rizal, Syaiful; Muhamad, M. R.; Sarah-Halim, .; Rashid, Nlizwa

doi:10.1016/j.sbspro.2015.06.343

Cited by 114 publications

(109 citation statements)

References 20 publications

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“…A research study is condeucted in Malaysia by Samer et al (2015) regarding finding the impact of microfinance on reducing poverty. This studyreported that household income of the recipients is positively affceted by microfinance.…”

Section: Literature Reviewmentioning

confidence: 99%

Islamic microfinance and household welfare nexus: empirical investigation from Pakistan

2017

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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.

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Section: Literature Reviewmentioning

confidence: 99%

Islamic microfinance and household welfare nexus: empirical investigation from Pakistan

2017

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“…Micro finance is an effective tool to reduce poverty [Sayed, Izaidin, Syaiful, Muhamad, Sarah & Nlizwa (2015); and Norma & Jarita (2011)]. The concept of micro finance has been introduced in the 1700s in Ireland (Sayed et al, 2015).…”

Section: The Definition Of Loan Repayment Defaultmentioning

confidence: 99%

“…The concept of micro finance has been introduced in the 1700s in Ireland (Sayed et al, 2015). As time goes by, there are widespread successes of several microfinance programs around the world, such as Bangladesh's Grameen Bank, Bank Rakyat Indonesia, ACCION in Latin America, the Center for Agriculture and Rural Development (CARD) in Philippines and so on.…”

Section: The Definition Of Loan Repayment Defaultmentioning

confidence: 99%

An Exploratory Study on the Factors Contributing Loan Repayment Default among the Loan Borrowers in Micro Finance Institutions in Shah Alam, Selangor

Murthy¹,

Mariadas²

2017

IJBM

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This research is carried out to discover the factors contributing to loan repayment default in micro finance institutions based in Shah Alam, Selangor, Malaysia. The findings will be useful for the micro finance institutions in Malaysia in selecting and implementing suitable policies to reduce defaults. In this research, data is collected through questionnaires. These questionnaires are distributed to 120 loan borrowers of micro finance institution in Shah Alam, Selangor. Furthermore, the data was analyzed with the software known as Statistical package for Social Science, for short SPSS. This study established that nature of business operated by loan borrowers is one of the factors that will influence loan repayment. Finding of this study are established that there is a positive relationship between nature of business operation and negative relationship between age of borrowers, diversion of funds by borrowers as well as repayment schedule to loan defaults.

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“…Since borrowers spend a major part of their income for food (Rahman & Ahmed, 2010), it is found by Agbola et al (2017) that per capita food expenditure differs significantly between borrowers and non-borrowers. The health of the members of borrower's household is found to have improved as the borrowers spend their income for treatment or health purposes (Agbola et al, 2017;Samer et al, 2015). Borrowers' housing condition is also found to have improved due to their increased ability to spend (Mazumder & Lu, 2015) and established borrowers are found to spend more for education purposes (Onyina & Turnell, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Household Factors on Repayment Ability among Islamic Microfinance Borrowers in Bangladesh

Sharmin¹,

Bakar²

2018

IJBM

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The paper aims to discuss the effect of household factors on repayment ability among borrowers of Islamic microfinance in Bangladesh. Cross-sectional survey was used on borrowers who have been involved for more than two years in rural development scheme. Data was collected from 507 households through a close-ended questionnaire. The survey found that household income increased significantly after access to the Islamic microfinance program. The structural equation model analysis shows that household income has a significant positive effect on repayment ability. Household savings and consumption were also found to have a significant positive relationship with household income. Household savings also has a significant positive relationship with repayment ability when it is negative with the household consumption. Unlike conventional studies, this study found that borrowers involved in farm activities have a better repayment ability. The emerging result contributes to the research regarding repayment problems and the findings demonstrate that the adoption of Islamic microfinance could be a better solution. It is also anticipated that the empirical result will contribute to the furtherance of literature on Islamic microfinance.

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The Impact of Microfinance on Poverty Reduction: Empirical Evidence from Malaysian Perspective

Cited by 114 publications

References 20 publications

Islamic microfinance and household welfare nexus: empirical investigation from Pakistan

Islamic microfinance and household welfare nexus: empirical investigation from Pakistan

An Exploratory Study on the Factors Contributing Loan Repayment Default among the Loan Borrowers in Micro Finance Institutions in Shah Alam, Selangor

Effect of Household Factors on Repayment Ability among Islamic Microfinance Borrowers in Bangladesh

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