| There are some key immoralities that I have | | | | amount is using for productive or non-productive |
| originated during the field investigation about different | | | | determinations. |
| MFI's in Pakistan (Kasur & Lahore Zones). These | | | | Client side (particularly in women), borrow the money |
| issues are whistling huge obstacles in regards of | | | | from the MFI's for business intentions and these |
| poverty mitigation and intensification in Pakistan | | | | women are giving this money to other deprived |
| microfinance sector. | | | | women more than banks interest rates (it should be |
| PMN (Pakistan Microfinance Network), State Bank of | | | | clear that already microfinance banks loans rate of |
| Pakistan (SBP) and others NGO's/MFI's are | | | | interest are too much high), due to illiteracy and lack |
| dynamically annoying to resolve these destructions | | | | of information about the MFI's and their loan |
| but still not thrive entirely. | | | | programs. All these women involved in this diversion |
| It is surveyed that, deprived community getting the | | | | are utilizing microcredit amenities for non-productive |
| credit from different MFI's for the growth of their | | | | purposes. As per interviewed by different MFI's |
| businesses, but they are using these loans or credits | | | | officers, about 80% to 85% MFI's clients are using |
| for their individual private exercises like, educational | | | | credit money in non-productive habits. It shows that |
| fees of their children, medical expenses, home | | | | mainstream of the poor community just getting the |
| maintenance, for paying their loans (the amount | | | | loans not for any business expansion or for new |
| which is borrow from their connections or restricted | | | | business setup; they are getting the loans only for |
| money lenders) etc. | | | | their individual desires fulfillment. |
| As per MFI's aim, microcredit facilities are for poor | | | | To eradicate this problem, approach should be only |
| people with indemnity that it must be used in the | | | | that MFI's delivers assets base facilities (Assets |
| expansion or strengthening of their businesses. Even | | | | Based Loans-Islamic Lending Methodology) to the |
| all banks/institutions/foundations loans officers are | | | | pitiable community. In this way any MFI can put the |
| familiar very well with this attitude of poor peoples to | | | | check & balance on the creditors as well as there will |
| take advantage of MFI's money for their individual | | | | be no recovery problems and can also analysis the |
| desires, loan officer and even branch managers | | | | problems which poor are facing during the business |
| always endorse and disburse the amount with this | | | | growth. Education, medical facility and some others |
| pledge only that people will pay the loans installments | | | | form of social help should be also part of these asset |
| in time to attain for their assigned monthly loans | | | | based loans. There should be also arrangement for |
| targets. Even the loan officers or any MFI's branch | | | | loan product consciousness to the targeted |
| manager never like to confirm whether the disbursed | | | | communities. |