Factors contributing to microfinance addiction among Pakistani microfinance participants

Abstract

This research is conducted in Bahawalpur, southern Punjab to discover the effect of Microfinance Addiction on Poverty Eradication. One thousand people, half men and half women, both members and non-members of Micro Credit Banks, will make up the sample. The goals of the study are captured in both an online survey and a traditional questionnaire developed with the help of experts. This method is effective in ensuring that all strata of the population are represented equally. Data is collected through cluster sampling. Micro-credit finance has assumed a significant part in changing and further developing the respondents' financial conditions. Data is tested through SPSS and Smart PLS and built up the connection between variables. All parties involved in the microfinance industry can benefit from the study's findings by making more informed decisions. The MFIs providing microfinance for the needy will also benefit from this since it will increase their productivity. The research suggests that the goal of microfinance may be reached more effectively if attention is directed on many sectors, such as agriculture and rural communities. Because of this, we may conclude that both Poverty Eradication and Micro-Finance Addiction are positively related to one another. The research found that the majority of people benefited from MFIs' micro-credit lending programmes. These micro loans helped them increase their economic standing and decrease their vulnerability to poverty. Micro-credit programmes may be improved upon in light of the study's results, which should be of benefit to regulators, policymakers, managers, micro-finance institutions, government authorities, all other stakeholders, and future academics.