How does micro credit services contribute in alleviating poverty in a developing global communities?

By issueing micro loans ot small business, useing the group leanding methodology

Through Micro Credit Facilities herein Pakistan, People are provided with subsidized loans for starting their own work through the process of capacity building. Villages are distributed in councils and each council can have the members of only that distinct area. Each council is supervised by the Social Organizers and Mobilization officers. These officers visit the council proceedings and updates the register by signing the proceedings. 

Recovery is made by those council members on monthly basis (varies according to the loan) and submitted to the loan provider. Doing so keep the people aware of each others activity and gives them an opportunity to start earning their bread and butter. Although loan provided are of smaller size but helps them start their small business.

 

In this process every individual is given a chance to contribute to the developing economy by contributing his share of work though small but matters a lot.

micro credit for productive projects contribute to poverty reduction to the following:1. Reduce the unemployment rate and employ a large number of unemployed2. Provide goods and services( reduces import and incrase export )