International Journal of Academic Multidisciplinary Research (IJAMR)   Year: 2022 | Volume: 6 | Issue: 6 | Page No.: 1-64 The Effect of Microfinance Credit on Poverty Alleviation: Evidence from North Wollo Zone Credit and Saving Institution, Amhara Region Download PDF Tsehainew Sisay Asmamaw Abstract: Poverty alleviation has become the dominant issue of governments at the national and international levels. Governments have been implemented different developmental and poverty alleviation programs to tackle the effect of poverty on poor people. Microfinance programs have been considered as an instrument in poverty alleviation. However, empirical studies have mixed and conflicting findings through the effectiveness of microfinance as a poverty reduction measure. At one extreme, the result of a previous study conducted by researchers who argue that microfinance participation enables the poor households to improve their household income and achieve the objective of poverty alleviation. On the opposite end, some researchers argue that microcredit has no significant effect on households' living standards poor households. So, the main objective of this study is by investigate empirically the effect of microfinance credit program on poverty alleviation referencing Angot worda Amhara Credit and Saving Institution branch office to fill empirical gap and contribute some information to the existing body of knowledge. Data from primary sources were collected through closed and opened ended interview questionnaires and interview then summarized, coded and tabulated, and analyzed using Statistical Package Of Social Science version 21. The interview questionnaire was distributed and collected from 369 active clients of Angot woreda Amhara Credit and Saving Institution branch office, which is located in North wollo zone, Amhara Region, Ethiopia. The multiple regression model was applied to determine the relative significance of each six variables (age, educational status, marital status, family size, Amount of loan, and duration of the loan) concerning poverty alleviation. The results were tested using F-test, and t-test at 5% level significance. The findings indicated that age, educational status, number of household members, Amount of loan taken by sample respondents have a positive statistically significant effect on the level of household income but the Marital status of respondents and duration of the loan taken by respondents to have a negative statistically significant effect on the level of household income. The study recommends that microfinance institutions as well as regulators, particularly the National Bank of Ethiopia, that design appropriate terms and Conditions, diversified collateral, adjust its interest rates downwards, and technical skill provisions to well-delivered low earner income.