Factors Effecting The Elasticity of Micro Credit Demand In Southern Punjab, Pakistan

Shazma Razzaq; Nadeem Maqbool; Waseem Ul Hameed

doi:10.36923/ijsser.v1i2.35

Open Access Article Economics

Shazma Razzaq ⁽¹⁾, Nadeem Maqbool ⁽²⁾, Waseem Ul Hameed ⁽³⁾

(1) National College of Business Administration and Economics (NCBA&E), Pakistan, Pakistan,

(2) Department of Management Sciences, Islamia University of Bahawalpur, Pakistan, Pakistan,

(3) Department of Management Sciences, Islamia University of Bahawalpur, Pakistan, Pakistan

https://doi.org/10.36923/ijsser.v1i2.35

Issue
Vol. 1 No. 2 (2019)

Submitted
May 23, 2019

Published
October 18, 2019

Keywords:

Government Policies, Gender Differences, Microfinance Institutions, Microcredit, Transaction Cost

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Abstract

The purpose of this study is to explore the factors affecting the demand for microcredit among various borrowers, with a focus on identifying the barriers that influence microcredit utilization. This conceptual study employs a qualitative research technique, using data collected from previous research studies and companies’ websites. The findings reveal that numerous factors influence the demand for microcredit, including interest rates, the relationship between lenders and borrowers, government policies, gender differences, prospective beneficiaries, borrowers' creditworthiness, transaction costs, limited access to credit, economic conditions, and the availability of information. These factors highlight the challenges that both borrowers and lenders face in the operation of microcredit systems. The study concludes that by understanding these factors, microfinance institutions can improve their credit distribution processes and better address the needs of their clients. Furthermore, this research fills theoretical gaps in the literature by identifying key elements that can aid in poverty reduction. Future studies should focus on these factors to enhance economic growth and alleviate poverty, particularly in southern Punjab, Pakistan.

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Authors

Shazma Razzaq

National College of Business Administration and Economics (NCBA&E), Pakistan

shazmarazzaq4@gmail.com (Primary Contact)

Nadeem Maqbool

Department of Management Sciences, Islamia University of Bahawalpur, Pakistan

Waseem Ul Hameed

Department of Management Sciences, Islamia University of Bahawalpur, Pakistan

Razzaq, S., Maqbool, N., & Hameed, W. U. (2019). Factors Effecting The Elasticity of Micro Credit Demand In Southern Punjab, Pakistan. Innovation Journal of Social Sciences and Economic Review, 1(2), 10–16. https://doi.org/10.36923/ijsser.v1i2.35

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