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The present study is an attempt to examine the impact of micro credit facility provided by Punjab Rural Support Program (PRSP) in rural areas of Mandi Bahauddin, Punjab. A convenient sampling technique has been used to select a sample of one hundred respondents. Pre – structured questionnaire has been used to collect data related to various aspects of the program. Micro credit taken, family size, nature of employment of the respondent, and level of education are the key variables of the collected data. Income differential is used to measure the effectiveness of the PRSP’s micro finance program. It is calculated as income after micro credit and income before micro credit. Two econometrics models have been developed. Standard econometrics techniques have been used to estimate these models. The estimated results show that micro finance plays a vital role in the enhancement of borrowers’ income and hence alleviate poverty in the study area. Level of education, family size, and nature of employment are also the major determinants of income differential and poverty measures. Validity of the estimates have been checked using various econometric tests and alternate procedures are adopted wherever estimates are not in conformity to econometric rules. On the basis of the evidence collected, this study has suggested that to make the program more responsive, it is imperative that the interest rate be reduced, loan size and procedures be rationalized, product range of the scheme be diversified, and recovery procedure may be made very convenient

Impact of Punjab Rural Support Program on Poverty Alleviation: Case Study of District Mandi Bahauddin