Unpacking Satisfaction Factors in Prime Minister’s Youth Business Loan (PMYBL) Scheme: A Beneficiary Impact Analysis

Abstract

Microcredit is a program that has gained widespread attention due to its potential to enhance the socioeconomic wellbeing of individuals. However, assessing the impact of microcredit on wellbeing requires the consideration of various welfare indicators and measurements. This study focuses on evaluating the impact of the Prime Minister’s Youth Business Loan (PMYBL) scheme on the socioeconomic wellbeing of the borrowers in Islamabad and Rawalpindi, Pakistan. For this purpose, it employs a questionnaire to collect responses from 120 microcredit beneficiaries using random sampling technique. Descriptive statistics and non-parametric tests are used for data analysis. The findings indicate that the PMYBL scheme has significantly increased the income of poor households and consequently improved their living standards. Moreover, the beneficiaries remain satisfied with the loan facilities provided by the scheme. The results support the notion that microcredit has a positive impact on wellbeing, as increased income leads to improvements in education, access to better health facilities, and the betterment of overall living standards. In addition, increased income enables households to enhance their consumption patterns, increase savings, and acquire assets. Overall, the study concludes that the PMYBL scheme has a significant impact on the socioeconomic conditions of the borrowers. Indeed, microcredit investments in enterprises have the potential to improve socioeconomic conditions and enable the poor to become entrepreneurs. This study adds to the existing literature on the positive effects of microcredit on the wellbeing of borrowers and provides insights into the potential of such programs for poverty reduction.