Microfinance has become the main tool of poverty alleviation in the 21st century. The microfinance program in different countries has different lending approaches. The most common in the world is group lending and individual lending. Each lending procedure has its own merits and demerits. The present research is about the evaluation of the mediating role of group lending between microfinance and poverty. In this regard, the study was carried out in district Chitral. The data was collected from two local support organizations using a structured questionnaire. For the purpose of analysis structural equation modeling was used and Smart PLS was used as an analysis tool. The finding of the results shows that the group leaders have a positive role in mediating the relationship between microfinance and poverty and in reducing the moral hazards and proper utilization of funds.

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The aim of this paper is to investigate the role of NGOs microfinance in women empowerment in the Northern Pakistan. A total number of 309 beneficiaries were selected form three NGOs microfinance (Biyar Local Support Organization, Garamchashma Area Development and Integrated Chitral Development Programme). Quantitative primary data was adopted while the partial least squaresstructural equation modelling (PLS-SEM) was used to analyze the data collected. A logistic test was also performed to estimate the microfinance impact on women empowerment. The results show microfinance program has boosted the confidence level and the decision making power of the beneficiaries. In addition, respondents are able to make choices regarding the expenditure as well as to express their opinions in the community. The findings imply that more injection of micro loans by the government and NGOs so women can play a greater role in the community specifically to improve the wellbeing of the members of the households.