The Microfinance Contributions on the Household Income of the Borrowers of Amanah Ikhtiar Malaysia (AIM) in Malaysia

Abstract

The main aim of the study is to investigate the impact of Amanah Ikhtiar Malaysia (AIM) microcredit on the total income of borrower’s households in East Coast Region, Malaysia. The present study utilizes descriptive statistical and econometric techniques. The multiple regression models are used to estimate how microcredit as well as demographic and socioeconomic factors influence the total income of borrower’s households. Based on the multiple regression techniques the study concludes that there are strong and significant positive influences of AIM’s microcredit towards the increase of household total income of the respondents. The present study recommends policy considerations for the successful and effective operation of microfinance programs through the increase of proper income generating activities, sufficient amount of access to credit, creation of self-employment opportunity in Malaysia.