A STUDY ON THE IMPACT OF MICRO FINANCE IN BANGALORE RURAL

A STUDY ON THE IMPACT OF MICRO FINANCE IN BANGALORE RURAL

This study unveils the impact of microfinance activities in nine villages in Bangalore rural. The study investigates the variables like women empowerment, savings before and after microfinance, monthly income, socio economic index, financial benefits, and purpose of savings. To study the problem there were six null hypotheses were framed. To test it data were collected from 400 beneficiaries of microfinance through questionnaire. The detailed questionnaire reveals the personal data, economic condition, group organization, knowledge and awareness of microfinance activities, savings pattern, training details, impact of training, credit utilization, impact of microfinance schemes, influence of microfinance schemes on community affairs, and expenditure pattern of the microfinance beneficiaries. The data collected have been analyzed using the Karl Pearsons correlation coefficient, Chi-square Paired t-test and ANOVA using SPSS 11.0 statistical software and the results obtained there by have been interpreted. The following were the objectives of the study. -To study the difference between savings before microfinance and savings after microfinance -To study difference between different occupations as a result of microfinance and monthly income -To study the difference between different occupations and the purpose of savings from microfinance activities -To study the relationship between microfinance with women empowerment and socio economic index -To study the relationship between microfinance with Main Occupation and socio-economic index -To study the relation between Socio Economic Index and Financial Benefits derived out of Micro Finance Schemes The following findings were derived from the study. 1. The study shows that there is significant difference between savings before microfinance and savings after microfinance. It is evident from the study that the savings after micro finance has improved the savings of the beneficiaries tremendously. 2. There is difference between different occupations as a result of microfinance and monthly income. 3. There is difference between different occupations and the purpose of savings from microfinance activities. 4. There is relation between microfinance with women empowerment and socio economic index. 5. There is relation between microfinance with Main Occupation and socio economic index. 6. There is relation between Socio Economic Index and Financial Benefits derived out of Micro Finance Schemes. Formal lenders discriminate against small borrowers because of the high cost of information acquisition and their weak enforcement capacity. This has led to the search for alternative financial service delivery systems for poor borrowers all over the developing world. The most popular alternative has been microfinance. Microfinance services produce positive effect on output, investments and savings of the beneficiaries. To achieve increase in the output, investments and savings of the rural people of India microfinance services should be intensified. Microfinance services result in the women empowerment in the rural and semi urban areas of India. The expansion of microfinance services will empower poor people to stabilize economically through better agricultural productivity, trade, animal husbandry, increased savings and investment. Key words:Micro finance,Women Empowerment ,Socio Economic Index

MANGARA THOMAS

Commerce