Abstract:   This study helps to understand the successful path of micro-financing, which can play a vital role in poverty alleviation in Pakistan. To collect data authors of this paper visited different microfinance institutions (MFIs) like Tameer Micro Financing Bank and Khushali Bank Limited in Karachi. A structured questionnaire was designed for data collection of consumers of microfinance. Statistical data of 100 samples showed 46% of respondents acquired a loan for agricultural purposes while 54% of loans were business based. It is observed that male respondents are higher than female. The regression model showed a 38% variation in consumer preference regarding microfinance services. The statistic in the ANOVA shows the significance of the model. The coefficient of MFI Approach with a negative sign indicates an inverse relationship with that of consumer preferences. It means that MFI agents do not give proper value to the targeted consumers. Finally, the amount of loan and interest charged by the MFI is also hurting the consumers of micro-finance. Practical Implications: This study delivers statistical evidence of utilization of funds as well as the consistency of gathered data. Work showed that respondents need to be acquired more knowledge about microfinance services in Pakistan.

Keywords:   MFIs, Microfinance, Customer Preferences, Pakistan.

Publisher:   ILMA UNIVERSITY

Published:   15 December 2016

Issue:   Issue 2 : Volume 12

E-ISSN:   2409-6520

P-ISSN:   2414-8393