Socio - Economic Impact of Micro Finance in Rural Community

Abstract

This thesis entitled “SOCIO-ECONOMIC IMPACT OF MICRO FINANCE IN RURAL COMMUNITY: A CASE STUDY OF CHIMMEK LAGHU BITTA, RATNANAGAR, CHITWAN” has been conducted to study the roles micro finances play to increase the socio-economic and living statuesque of rural households of Ratnanagar. Micro-finances are one of the most basic banking institutions for household who have no access to big banks because of their service charge. This study makes an assessment on what role does microfinance play on socio-economic upliftment of rural households on different aspect after involvement in Microfinance such as, education, status of health, consumption, access to real assets, income generation capacity etc. A descriptive research design was used in the study. Similarly, non-probability purposive sampling technique was used including rural areas as sub-section. This study is based on primary data, which has been collected in the filed with the help of structured questionnaire and interview. The collected data were then analyzed in excel and interpretation were made. Majority of Household head were Male (75.40 percent) and most of the family members were literate i.e., only (9.75 percent) reported to be illiterate. The average family size was found to be 4.87 members. Likewise, a big portion of sample household population belong to 16 to 61 age group which is (53.2 percent). Similarly, majority of sample household come from Brahmin/chettri and Tharu ethnicity. Likewise, the main source of household income was from trade/business and foreign employment. The study concludes that more people are now aware of various benefits that microfinance can bring into their lives. The study found microfinance has contributed in health, education, quality of life, income level and consumption capacity. Hence, if the government makes the policy which makes microfinance to reach out more people from rural aspect of economy, then it will be very crucial for household and development of country as well. Keywords: Microfinance, socio-economic status, rural economy, households, Chimmek Laghu Bitta