Micro Credit to Micro Finance institutions

Fighting poverty is one of the core objectives of the Millennium Development Goals (MDG).Micro Finance is the best way to eradicate poverty and to empower people. Micro finance is the newly emerging financial industry. It has the target market of more than 1.8 billion people in the whole world. The emphasis of this study is to analyze the prospects of micro finance industry in Pakistan. Our research stresses the need of the diverse micro financial services in order to make the micro finance banks sustainable and profitable while serving the diverse needs of the poor. MFI’s should be distinguished from the NGOs as they are not just charity organizations. The diverse products will mitigate the risk and at the same time gives a variety of services and choices to the clients. Today the reason of the loss of the most of the micro finance institutions is that they offer very few products dominantly micro credit. The study has reviewed the success factors of Kashf, a successful MFI in Pakistan and has developed its recommendations on the basis of this analysis that can be implemented on the other MFI’s.


1.1 Problem Background
1.1.1 What is sustainability?
1.2 Definition of the Micro Finance
1.3 Microfinance Institutions
1.4 Significance of the Microfinance Institutions
1.5 Leading Views on Micro Finance
1.5.1Poverty Lending Approach
1.5.2Financial System Approach
1.6 Micro Finance Approach Prevalent in Pakistan
1.7 Purpose of the Study
1.8 Research Question
1.9 Out line of Research
Chapter 2: Methodology
2.1 Research Approach
2.2 Data Collection
2.3 Secondary Data
2.4 How the analysis was done
Chapter 3: Theoretical Frame work
3.1Micro Finance and Poverty
3.2 Difference between conventional banking and Microfinance banking
3.3 Difference between micro credit and microfinance
3.4 Impact of Micro Finance on Poverty
3.5 Micro Finance Clients
3.6 Micro Finance for economically active Poor
3.7 Philippine Case
3.8 Main Micro Financing Programs
3.9 Sustainability of the Micro Finance Programs
3.10 Supply lending and Poverty lending Approach
3.11 Demand Driven and Financial System Approach
Chapter 4: The Pakistan Case
4.1 Pakistan Economy
4.2 History of Micro Finance in Pakistan
4.2.1 Dr.Akhter Hameed khan
4.3 Sources of Micro Finance in Pakistan
4.3.1 Informal Sources
4.3.2 Semi formal Sources
4.3.3 Formal Sources
4.4 Micro Finance institutions in Pakistan
4.5 Performance of MFI´s in Pakistan
4.6 MFIs in South Asia: Efficiency &Sustainability
4.7 The need of diverse MF services
Chapter 5: Analysis
5.1 Target Market
5.2 Objective of MF institutions
5.3 Constraints of MF in Pakistan
5.4 Impacts
5.4.1 Moral Hazards
5.4.2 Mandatory Savings
5.4.3 Cash Flows
5.4.4 Social Collateral
5.5 Insufficient Access to services
5.6 Micro Finance out Reach
5.7 Innovations in MF Sector
5.8 Kashf as a Benchmark
5.8.1 General loans
5.8.2 Emergency loans
5.8.3 Home improvement Loans
5.8.4 Business Surmaya loan (Working Capital)
5.8.5 Insurance
5.9 Diversified Product Lines
5.9.1 Micro Insurance
5.9.2 Micro Savings Compulsory Savings Voluntary Savings
5.9.3 Micro Leasing
5.9.4 Organizational structure, Procedures and Processes
5.10 Limitations
5.11 Alternatives
5.11.1 From Group Lending to Individual Lending
5.11.2 Low income clients should also be included in the recipient list of MF
5.11.3 ATM/Credit Cards
5.11.4 Experienced Bankers should be hired by these institutions
Chapter 6: Conclusion

Author: Yasir Paracha, Muhammad Amin

Source: Blekinge Institute of Technology

Reference URL: Visit Now

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