The Role of Islamic Microfinance Institutions in Increasing Well Being

The purpose of this study is to identify the impact of Esaar Microfinance program of HHRD on social wellbeing of its beneficiaries. For this purpose we have selected respondents from the program area i.e. Naran Valley of District Mansehra Pakistan. In this study social wellbeing is measured from indicators like education, health, income, assets, expenditure and savings. Both quantitative and qualitative techniques are applied to get reliable results. We have observed from data analysis that the program has positive impact on socioeconomics indicators, while it has positive significant impact on economic indicators i.e. income, assets, expenditure and savings. Esaar Microfinance program of HHRD is meeting the defined standards of Shariah. Esaar Microfinance program of HHRD has adopted social collateral approach to mitigate the risk and this approach leads to the social bonding of the community. Now the people of that area are engaged in participative approach which indicates the social wellbeing as well as the economic uplift of the community.