Perceived Impact of Microfinance Services on Borrowers

Abstract

This study focused on determining the perceived impact of microfinance services on selected borrowers in Northern Samar, particularly in terms of socio-economic welfare, income, standard of living, and poverty alleviation. Utilizing a descriptive-quantitative research design, the study surveyed 383 borrowers from two microfinance institutions in Northern Samar. Data were gathered using a validated survey questionnaire and statistically analyzed using weighted means. The results showed that microfinance services have a high overall perceived impact. Notably, both socio-economic welfare and standard of living revealed substantial improvements in children’s education, access to basic needs, transportation, sanitation, and electricity. Poverty alleviation had the highest impact across all indicators, underscoring the role of microfinance in increasing productivity and reducing vulnerability to poverty. The income received had a high impact, indicating enhanced purchasing power and household financial contribution, albeit with a relatively lesser direct effect on income growth. The results highlight the critical role these services play in improving living conditions in Northern Samar. These insights may serve as a valuable starting point for future research that incorporates inferential methods and additional indicators to guide program development and policymaking, thereby better supporting long-term socio-economic progress.