Analysis of Microfinance and Its Impact on Improving Living Standard of Borrowers: Evidence from Khyber Pakhtunkhwa

  • Muhammad Imran Shah Department of Management Sciences at Gomal University, Dera Ismail Khan, KPK, Pakistan
  • Zahid Awan Institute of Business AdministrationatGomal University, Dera Ismail Khan, KPK, Pakistan
Keywords: Micro-finance, MFIs, Poverty, Living, Income, Employment, Education & Health Care


There are many indicators such as the living standards, empowerment of borrowers, employment opportunities and poverty reduction which show the association between microfinance and developing economy. The major objective of this research study is to analyze microfinance to show its impact on living standard regarding people of Khyber Pakhtunkhwa, this study is based on both quantitative and qualitative methodologies to find out the feasible solution of the research problem. A stratified random sampling technique was used to get the response of a total of 265 respondents. Data were collected through questionnaires (close ended), semi-structured interviews, observations and the documentary reviews. Data analysis was based on descriptive statistics using various statistical tools like regression, correlation, t-test, and ANOVA with the help of tables and charts. The results of the study show that microfinance has positive and significant effects on the economic and living standard of the borrowers of microfinance.