Abstract:
The main purpose of this investigation was to analyze the relationship between
Performance of Micro finance and independent variables such as loan repayment,
credit worthiness of burrowers and credit risk. In addition to analyze socio and
economic characteristics of micro Finance beneficiaries as well as, to analyze
contribution of Micro Finance for poverty alleviation. Secondary Data were collected
from four Micro Finance suppliers in Ampara District by using annual reports and
journals of Micro Finance relevant to 2008-2011 time periods. In this study
descriptive and correlation analysis were used to analyze the data.
The results of descriptive analysis revealed that only two variables of selected
variables have affected to the Micro Finance performance and other one is not
affected. The result of correlation analysis found there is a significant positive
relationship between both loan repayable and credit risk with performance of Micro
Finance. Therefore there is a negative relationship between credit worthiness of
burrowers and performance of Micro Finance.
