Abstract:
The concept of microfinance in Pakistan comes with dual aim of social and economic
development of nation. Helping poor people by providing financial services and contribute in
the betterment of their lives. By viewing these objectives of microfinance, study aims to
provide insight of the concept “betterment through microfinance” by analyzing the effect of
loans given to poor people including top microfinance banks in Pakistan. Due to rising, worst
security, political instability and economic slowdown has been affecting the growth of
microfinance, earlier it has gained immense growth but later growth rate started to go down.
This research’s purpose is to analyze the effect of microfinance loans on the life of borrowers.
From many years’ bankers, scholars and researcher has been claiming that it brings
improvement in social and economic setup of society. It is type of descriptive study to know
that whether microfinance in Pakistan fulfilling its purpose and making positive impact on
income of those who borrowed money. Finding type of relationship between borrowings and
income by developing hypothesis to have better idea of its purpose.
