Interest free micro credit loans: Pakistani female entrepreneurs

Author Affiliation

Amber Gul Rashid is Assistant Professor at Institute of Business Administration (IBA), Karachi

Lalarukh Ejaz is Assistant Professor at Institute of Business Administration (IBA), Karachi

Faculty / School

Faculty of Business Administration (FBA)


Department of Marketing

Was this content written or created while at IBA?


Document Type


Source Publication

Journal of Islamic Marketing




Accounting | Business | Marketing


Purpose: The purpose of this study is to examine the impact of interest free micro credit loans on the lives and business of the female borrowers. Design/methodology/approach: Both primary and secondary data have been used. Case studies of four different female entrepreneurs have been included as part of the research. The observation was conducted over an extended period of time. Subsequently, interviews were conducted with four beneficiaries to know the role played by interest free micro credit loans in improving (or not!) their lives and businesses. Findings: Interest free micro credit loans played a significant role in bringing a positive change in the lives of the borrowers. Clients mentioned that “zero interest rate” and “flexible repayment schedules” were the main reason for obtaining loans from this source. Further, they suggested that there is a need for training/workshops, feedback/monitoring, networking and online repayment system to make interest free micro credit loans more successful. Research limitations/implications: The focus of the study is limited to only four female borrowers in Karachi. Future studies can include other cities and cross-gender comparisons for better understating. Practical implications: This study will help microfinance organizations to assess the problems faced by the borrowers; it will also shed light on the motivations of borrowers. Originality/value: Interest free micro credit loans were provided to women entrepreneurs in a social experiment and implications were observed.

Indexing Information

HJRS - X Category, Scopus, Web of Science - Emerging Sources Citation Index (ESCI)

Publication Status


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