An Anaysis the Impact of Microcredit on Socio-Economic Livelihood of the Rural Community: A Case Study of Shaheed Benazirabad District

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Volume 7 Issue 1, 2026

Author(s):

Ghazla Umer Baghal (Corresponding Author)
University of Sindh, Jamshoro, Pakistan
ghazala@usindh.edu.pk

Shabana Tunio
University of Sindh, Jamshoro, Pakistan
shabana.tunio@usindh.edu.pk

Lubna Soomro
University of Sindh, Jamshoro , Pakistan
melubna@hotmail.com

Abstract This study aims to assess the impact of microfinance on socio-economic livelihood of rural community and analyse the women empowerment after getting credi which may improve livelihood and reduce poverty, as we know Poverty is an major socio economic problem of a society in which an individual, household or a group of people is deprived from basic needs which is necessary requirments for survival. As we know most of the portion of the population in Sindh comprised is poor who are deprived from basic needs.microfince is considered as a tool to change the socio economic livelihood by providing small loan to low income groups who lack access to formslbanking system by investing on business to generate income and empower women to utilize their hidden expertise of skills through market like handicrafits and improve their livelihood and contributes for their family. Rural women often possess valuable skills and expertise that remain underutilized due tonfinancial constraints. Therefore, This study aims to analysde the impact of microcredit in reducing poverty among the masses from four talukas of the district of Shaheed Benazirabad district (SB) in the province of Sindh. For the reliability, 120 respondents were selected randomly. The key findings of the study reveals that living standard and income level increases after utilizing the microcredit. This finding illustrates that 46% respondents were agree that due to microcredit, they develop their business. 24% strongly agree from above stated statement, 19% neutral, 7% disagree and 4% were strongly disagreeing from this statement 39% finds agree from this that their assets expenditure increases after getting microcredit. 26% seemed strongly agreeing from this statement that there were expenditure increase after microcredit. The results show there is significant relationship between effect of microfinance to increase income, saving and living standard of beneficiaries, because of significant value is 0.00 which is less than 0.5 with the degree of freedom 8, which shows hypothesis is accepted.
Keywords Micro Finance Banks, Micro Finance Institution, Micro credit, Poverty, Shaheed Benazirabad.
Year 2026
Volume 7
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name ILMA Journal of Social Sciences & Economics
Publisher Name ILMA University
Jel Classification -
DOI
ISSN no (E, Electronic) 2790-5896
ISSN no (P, Print) 2709-2232
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link http://ijsse.ilmauniversity.edu.pk/arc/Vol7./pdf/v1/3.pdf