The Role of Microcredit Advanced by the Bank of Khyber in Poverty Alleviation In Two Selected Union Councils of District Mardan

Abstract

This study explores the role of microcredit provided by the Bank of Khyber in reducing poverty in two union councils Shergarh and Hathianof Tehsil TakhtBhai, District Mardan. A total of 70 borrowers were selected from 200 microcredit recipients through purposive sampling. The research used a questionnaire to collect data on income, savings, education, health, and expenditure before and after receiving the loan. The paired sample t-test was applied to analyze the impact. The results showed a significant increase in income, savings, education spending, and health expenses after receiving microcredit. These findings suggest that microcredit has a positive effect on improving the living standards of the poor. Based on the results, this study recommends expanding microcredit access, increasing loan amounts, and monitoring the use of funds for income-generating activities.

Keywords: Microcredit, Poverty Alleviation, Financial Inclusion, Socio-Economic Development, Income Generation, Rural Development, Microfinance, Pakistan.