Exploring Causal Linkage between Household Income and Microfinance Lending: A Case Study of Mirpurkhas, Sindh

Abstract

The paper intends to correlate changes in household income due to micro lending in the shape of microfinance services provided by Microfinance Providers (MFPs) to rural people. The study is conducted in the selected villages to assess the performance of microfinance lending in Mirpurkhas, Sindh. For this study the villages were purposively selected where microfinance interventions in the shape of micro loans by Microfinance Banks (MFBs), Rural Support Programmes (RSPs) and Non Government Organizations (NGOs) took place in the past. The study explores and attempts to confirm a positive relationship between the rises in household income and microfinance lending availed by those households. The supposition has been made that the micro lending provided the ample opportunities including expansion of businesses and played significant part in raising household incomes.