Impact of micro-credit scheme of Punjab rural support programme (PRSP) on the people of rural areas of Sargodha region [Pakistan]

The present study focused on the Punjab Rural Support Programme, which was established in June 1998 by the Punjab Government. It played a vital role to reduce poverty in the rural areas. The universe of the study was rural area of Sargodha region where PRSP was in action. Data were collected by using purposive sampling techniques. The objectives of the study were, to assess the socio-economic status of people before and after getting micro-credit, to find out the hurdles and problems of the people in the way of getting micro-credit, to study the type of economic activities which the people have adopted after acquiring micro-credit from PRSP particularly, to assess the extent of poverty alleviation and give suggestions to improve the micro-credit policies in general, with particular reference to PRSP in Sargodha region. A majority of the respondents i.e., 51.11 percent belonged to the age group 28 to 43 years. 60% were male, 74 percent were married, 71 percent belonged to joint family system, 53% had the 5 to 8 family members, 94 percent had their own houses, 44.5% were living in semi- pucca houses, 65.5 percent were educated, 76.8 percent had no agriculture land and 43.33 % were belonged to agriculture and livestock, a majority of the women's occupation was livestock and poultry, 67 percent were earning upto 5000 Rs. before acquiring micro credit, a large majority of loanees, 90 percent, claimed that their income increased after acquiring micro credit from PRSP, 64 percent spend their income for households articles and 53% used to save their income, a majority of the respondents 67% spent 1001 to 5000 Rs. monthly and majority of the respondents i.e., 54 percent got loan for livestock and expansion of business, a majority of the respondents demanded credit to above then 20000 Rs. from PRSP. While 46 percent to the amount of 15000 Rs. from PRSP. A majority of loanee i.e., 76 percent were satisfied with the amount of credit while 76 percent were not satisfied with the interest rate and they suggested that the interest rate should be upto 10 percent, a majority (71 %) of the respondents got credit just once.84% said, that they were never received credit from other agencies., a majority (75 %) had repaid the credit by installments, while 75 percent had repaid the credit according to schedule. Major portion of the respondents (38.9 %) stated that themselves motivated them. Hundred percent respondents reported that they repaid the credit in time. A large majority of the respondents i.e. 93 percent stated that PRSP credit scheme was better than others. About 54 percent of the respondents, said that micro credit had played vital role in improving their education and quality of food. A majority of the respondents (73 %) did not face difficulty in getting credit. A majority of the respondents stated that their status in society due to the micro-credit scheme improved (57 %) said that poverty was alleviated. About 44 percent of the respondents suggested that the amount of credit should be increased. A majority of the respondents 85.6 percent revealed that credit was disbursed according to their need of time. There was highly significant relationship between micro-credit and poverty elevation from the rural areas. There was no association between income and saving. There was an association between micro-credit and increasing in income.