Abstract:
Micro finance program extends small loans to very poor people for self-employment projects, that to care
for themselves and for their families. Micro finance can thus play an effective role in extending the reach of credit
in rural areas, Micro finance facilities enable an entrepreneur to build a business or expand existing business and
create a better change in their lives. Microfinance Institutions (MFIs) give the opportunity for the people who are
living under the poverty lines by granting loan for investment purposes and somehow by providing their
management expertise. The main objective of this study is to identity the how the micro finance activities effect
on the people living standard. 168 Micro finance beneficiaries randomly selected in J/111 GS division. Data were
analyzed across different statistical tests through SPSS Software. The finding of this study shows that
micro finance increases saving and consumption activities of beneficiaries. The results of regression analysis
shows coefficients of loan amount is 0.562 with the p value of 0.001. It indicates that loan amount has statistically
positive impact on alleviating poverty among micro finance loan holders in research area. According to the
correlation analysis, it shows strong positive correlation between micro finance and saving and consumption
activities with the coefficients of 0.73 (p = 0.000). Further, The R2 value of the regression model is 0.59 which
means that approximately 59% saving and consumption activities are implied by the micro finance. Thus, this
study concluded that micro finance programme is a better tool for poverty alleviation strategy.
