Microfinance and the Decision to Invest in Children’s Education

Viswanath, P. V.

doi:10.3390/ijfs6010016

Cited by 5 publications

(4 citation statements)

References 23 publications

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“…Therefore, it is clearly said that micro credits schemes play a vital role to uplifting their educational condition indicating rewarding welfares. And the result is consistent with the results of Sivchou et al (2012), Perceval et al (2017) and Viswanath (2018). Improvement in household living standard of the respondents Table 4 depicts that due to increase in income, which is the major source to improve the family living standard and upholding the domestic expenses, which also further indicates that most of the farmers 85.1% have improved the living standard of their household due to the microcredit facility.…”

Section: Improvement In Health Statussupporting

confidence: 89%

Impact of Microfinance on Socioeconomic Status of Farmers in District Dera Ismail Khan

Anjum¹,

Rehman²,

Khan³

et al. 2020

SJA

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The main purpose of this study is to assess the impact of microfinance on the socioeconomic status such as, family income, family health status, children educational status, living standard, food/diet pattern, crop production and transportation and finally the constraints faced by the borrowers to get the loans from microfinance institutions. The primary data were collected from the 300 borrowers of microfinance institutions especially from Khushhali Bank limited through a well-designed structured questionnaire. The descriptive, inferential statistics, chi square statistics and simple linear regression models were used. The results of the study highlighted that 72.2% of the farmer's incomes increases due to microcredit's facility and due to increase in income, the farmers are able to get more access to the health facilities than before. 82.2% farmer's response indicated that the microfinance have a positive and significant impact on the children's educational status and due to microfinance their children were moved from government to private schools. Moreover, the parents whose children were not getting their education from the educational institutions due to their financial crisis and issues, now the parents sent their children to the educational institutions. 85.1% farmers replied that there is significant enhancement in the family living standard due to microfinance facility in the research area. It was also discussed that constraints experienced by the borrowers in getting the loans from the Khushhali bank limited and other microfinance institutions. The borrowers enumerated different problems such as high interest rate, no information about microfinance institutions, the complicated loans procedures, not believing on microfinance, small loan amount and not availability of loan at proper time. The farmers contacted the local agricultural credit officers, with governmental and non-governmental organizations and with different friends and relatives. The overall study concluded that the socioeconomic status of the farmers had been improved due to microcredit facility from the Khushhali Bank limited and other governmental and nongovernmental micro financing institutions in D.I. Khan. Finally, the study recommended that the government should manage the interest free loans, provide loans at earliest, shortest possible and at proper time, the government should need to increase the average size of the microfinance loans and create awareness through media.

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Section: Improvement In Health Statussupporting

confidence: 89%

Impact of Microfinance on Socioeconomic Status of Farmers in District Dera Ismail Khan

Anjum¹,

Rehman²,

Khan³

et al. 2020

SJA

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“…Critics believe that too much focus remains on the latter, whereas the former is ignored. Indeed, proponents of social impact measurement do not dispute the volumes of direct impact studies on health, education, and other economic benefits for clients (Mtamakaya et al [10], Imai and Azam [11], Kumah and Boachie [12], Viswanath [13] Becchetti and Conzo [14]). The contention is the ability of microfinance to serve the very poor (depth of outreach) and to deliver other wider benefits such as social capital, political participation, and empowerment of women [3,9,15,16].…”

Section: Introductionmentioning

confidence: 99%

Impact of Microfinance on the Social Performance of Local Households: Evidence from the Kassena Nankana East District of Ghana

Ofori

Kashiwagi

2022

Sustainability

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This study examines the impact of microfinance on the social performance of local households in the Kassena Nankana East District of northern Ghana. The study’s primary objective was to measure the average effect of the common social performance framework’s core indicators (outreach and products and services) on beneficiaries. Because the social performance management framework is an institutional-based evaluation, it is silent on changes in the service users’ lives. This study modified the common social performance management framework to treat outreach and products and services as independent variables, with changes in the lives of service users as the only output or result. We narrowed these indicators to outreach and mobile banking, and under products and services, we concentrated on nonfinancial products and services because, in microfinance, nonfinancial services lack the needed attention. This study employed the propensity score matching (PSM) method to measure the average treatment effect of the independent variables (outreach, mobile banking, and training) by using data from 341 client households. In the absence of a random assignment of treatment conditions, we placed client households who received these three treatments in a treatment group and those who did not receive such treatments in a control group. We further used the PSM method to match observations of households in the treatment group (households who have access to mobile banks, MFI outreach, and training) with those in the control group (households without access to those) by creating the conditions of an experiment where the treatment elements are randomly assigned to avoid any possible bias. The results showed that outreach significantly decreased loan disbursement time. Conversely, outreach was not significant in relation to delayed loan disbursement time. Mobile banking was statistically significant for increased income, business expansion, timely loan disbursement, and high cost of loans. On the contrary, mobile banking was significantly negative in relation to delayed loan disbursement time. Training showed a significant correlation with women’s empowerment, household decision making, and political and community participation. Regarding the impact of training on the use of a loan, the value of loans for consumption was negative, whereas for production it was positive. Despite the general acceptance of the common framework to measure microfinance social performance, there is still little work to prove the relationship between the framework’s output variables and changes in the lives of the service users. This paper is the first to provide empirical evidence on the impact of outreach and training on change variables. The implication of this paper is that nonfinancial services are equally crucial to delivering change for microfinance service users. Therefore, policymakers must find ways to incorporate essential nonfinancial products and services as bundle packages with credit. Additionally, mobile banking has a high potential for addressing challenges with remote outreach and adverse selection, which is a primary obstacle preventing many poor people from accessing credit.

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“…Thu and Goto (2020) found that microfinance could help cover expenditure on education in ethnic minority households in Bac Kan province in Vietnam. Similarly, Viswanath (2018) conducted a study in India and found that microloans could help the members cover education expenses. However, there have been studies that found an insignificant impact of microfinance on health care and/or education expenditure.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of microfinance on poverty reduction in Vietnam: A dynamic panel‐data analysis

Duong

Nghiem

2022

Poverty & Public Policy

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The current study uses the Generalised Method of Moments to examine the dynamic relationship between access to microfinance and poverty reduction. The paneldata set is constructed from the Vietnam Household Living Standard Surveys during 2002-2008. The results show that access to microfinance in the previous period significantly improves per adult-equivalent income and consumption of the households in the current period.However, previous participation in microfinance programs is not sufficient to help households escape from poverty.In addition, both private and government bank loans significantly help improve household per adult-equivalent income, consumption, and poverty rates. The empirical results imply that a larger loan size, diversified loans for different consumption purposes, and improvement in infrastructure and facilities, especially in rural areas, are believed to help reduce poverty.

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Microfinance and the Decision to Invest in Children’s Education

Cited by 5 publications

References 23 publications

Impact of Microfinance on Socioeconomic Status of Farmers in District Dera Ismail Khan

Impact of Microfinance on Socioeconomic Status of Farmers in District Dera Ismail Khan

Impact of Microfinance on the Social Performance of Local Households: Evidence from the Kassena Nankana East District of Ghana

The impact of microfinance on poverty reduction in Vietnam: A dynamic panel‐data analysis

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