Effectiveness of Islamic Microfinance Institutions Through Customer's Satisfaction in Pakistan
| Autor: | Muhammad Mahmood Shah Khan, Muhammad Sadil Ali, Farrukh Ijaz, Asghar Kamal |
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| Rok vydání: | 2022 |
| Předmět: | |
| Zdroj: | NICE Research Journal. :1-14 |
| ISSN: | 2517-987X 2219-4282 |
| DOI: | 10.51239/nrjss.vi.342 |
| Popis: | In developing economies, microfinance institutions have become an increasingly popular approach to reducing poverty, social empowerment (especially among women), and economic growth by providing new opportunities for the poor for entrepreneurship. This study investigates the effectiveness of Islamic microfinance programs on the comfort level of the Islamic Microfinance (IMF) system in Pakistan. The study examines the effectiveness of IMF institutions in the country's small and medium enterprises (SMEs). Quantitative research based on primary data is conducted to evaluate the effectiveness of various IMF institutions in Pakistan. The data is collected from the 88 SME owners located near Lahore (Punjab), Pakistan. The independent variables are the cost of the loan, income and living standard, loan repayment policy, Shariah compliance, and loan utilizing opportunities. The dependent variable is microcredit customer satisfaction examined through a 5-point Likert scale questionnaire. Regression analysis is applied and found that income, loan repayment policy, loan utilization opportunities, loan cost, and Shariah compliance have a statistically significant positive influence on the microcredit customer's satisfaction. The study implies that understanding customer satisfaction helps IMF institutions enhance their financial performance, improve client retention, and fulfill their social mission. |
| Databáze: | OpenAIRE |
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