The Role of Micro Credit in Poverty Alleviation

Abstract

The main objective of this paper is to analyze the role of micro credit in poverty reduction for the period 2009 to 2011. This shows that due to utilization of micro credit literacy rate is increased and there is a decrease in poverty occurs. All the results are highly significant and due to micro credit the literacy rate of several families have increased and some were remained unchanged. On the basis of pair t-statistic we have rejected the null hypothesis (ho: lesser the role of micro credit, lesser would be the chances of poverty alleviation) and accepted the alternative hypothesis that (HI: higher the role of micro credit, greater would be the chances of poverty alleviation).  This paper concluded that the micro credit plays a very vital role in poverty alleviation and government and regulatory authority should try to increase the volumes of micro credit and subsidized the micro credit institutions to facilitate and enlarge the volume of credit. Socially and economically viable projects should be financed.

Keywords: Micro credit, poverty alleviation, paired T-statistic, Observation, Interviews