The Impact of Micro-Credit on Procreating Income and Alleviating the Menace of Poverty in Quetta City

Abstract

In developing countries, low income for living standard continuously remains a critical matter to be addressed. Several developing countries like in Pakistan; micro-credit a part of microfinance is always a tool to ameliorate the living standard for poor people. This research focused to explore the impact of Micro-credit on poverty reduction with the prime focus on the amelioration of living standards and income generation for poor people in Quetta city. Structured interviews were carried out for data collection through a convenience sampling of 50 borrowers. Although active borrowers of micro-credit from major microfinance banks i.e., Tameer Bank, First Microfinance Bank and Khushhali Bank Limited operating in Quetta city have been selected as a population. This study was explanatory and data was analyzed through descriptive statistical analysis i.e., frequencies and percentages by using Statistical Package for Social Sciences (SPSS) and Excel for graph presentation. Findings and analysis have unearthed many dimensions, but compendium of the conclusion is that microcredit was found to have a negative impact on income generation and poverty alleviation (living standard).