Customer
Behavioral Approach for using Micro-Credit: Analysis of
Rural Community of Pakistan
Abstract
Micro financing has become integrated in the financial
system of Pakistan for overcoming increasing level of
poverty. Approach of micro-credit by which small loan is
landed to lower income people play a great role in
enhancing poor ones income. This study investigates the
level of benefits like encouragement for financial
independence, mobilization and allocation of resources,
female‟s control over resources, smooth cash flows, and
decision making at family level due to micro-credit. The
result should assist the micro finance institutions (MFIs)
to ascertain whether micro-credit financial system is
working properly. A survey of MFIs clients (Male and
female) shows behavioral intentions and effects of
micro-credit to fulfill their planned purposes of
borrowings. Respondent‟s attributes the increase, to
their standard of living, to micro-credit and MFIs
efforts. Thus, this study indicates the planned used by
micro-credit and minimal level of use of micro-credit
for no planned purposes. It had been practically amplify
that the increase in scope of micro-credit is necessary
for poverty alleviation in Pakistan.
Keywords: Microfinance, Customer behavior,
Micro-credit in Pakistan, Microfinance performance,
Behavior intension.
JEL Classification: M1; M10; M12
