Micro-Credit Schemes and Socio-Economic Empowerment: Assessing the Impact of NRSP in District Kotli, AJK

Abstract

This study examines the impact of micro-credit through loans on poverty reduction among women entrepreneurs in Azad Jammu and Kashmir (AJ&K). AJ&K faces challenges in the uplift of its economy through a decline in poverty. To resolve acute micro-finance, organizations provide micro-finance to the public in third-world countries. The National Rural Support Program (NRSP), a public sector micro-credit program of the government that operates in four provinces of Pakistan, including Azad Jammu and Kashmir, plays a vital role in distributing microfinance, especially to the female community. This study explored the multidimensional impact of micro credit on the socioeconomic condition of the targeted study area (AJK). Primary data was collected through a structured survey questionnaire for empirical analysis, and a total of 400 females were selected by using a purposive sampling technique. Different quantitative and qualitative analysis techniques were used to interpret data and results. About 82% of respondents reported taking credit from NRSP twice, 17.3% once, and 1% thrice. NRSP's micro-credit scheme has significantly contributed to the socio-economic improvement of the female community in District Kotli. Positive results are observed in various dimensions, including income generation, financial inclusion, women's empowerment, and overall well-being. The study concludes that NRSP micro-credit helps increase the quality of the Ale community living standards in the district Kotli AJ&K.