MICROFINANCE AN INTIATIVE TO PROMOTE A SOCIAL WELFARE

INTRODUCTION ABOUT RESEARCH:

Microfinance means providing small loans (microcredit) to very poor families to help them
engage in productive activities or nurture their tiny businesses. Over time, microfinance has come
to include a broader range of financial services (credit, savings, insurance, etc.), as we have come
to realise that the poor and the very poor, who lack access to traditional formal financial institutions,
require a variety of financial products.

Microcredit came to prominence in the 1980s, although early experiments date back 30
years in Bangladesh, Brazil and a few other countries. The important difference of microcredit was
that it avoided the pitfalls of an earlier generation of targeted development lending, by insisting on
repayment, by charging interest rates that could cover the costs of credit delivery, and by focusing
on client groups whose alternative source of credit was the informal sector. Emphasis shifted from
rapid disbursement of subsidized loans to prop up targeted sectors towards the building up of local,
sustainable institutions to serve the poor. Microcredit has largely been a private (non-profit) sector
initiative that avoided becoming overtly political, and as a consequence, has outperformed virtually
all other forms of development lending.

Traditionally, microfinance has focused on providing a very standardized credit product.

So, this research is made an attempt to study the microfinance and how it helps to promote the
social welfare.

LITERATURE REVIEW:

PORKODI, and D. ARAVAZHI (2013): Present the Micro Financial Institutions and Government
has initi ated to start savings with availability of finance in rural finance and with the help of some
formal sources of funds. The MFIs have immense opportunities in the new avatar of micro credit
in India. However, in the light of recent experiences, and the need for qualitative growth, we
suggest that Micro Finance will manage and fully support the self-help groups in the terms of
financial assistance to developmental activities.

Dr. Suprabha K.(2014) The main moto of micro finance is medium- and long-term financial
assistant is empowerment the Self-Help Groups members to enable them to generating employment
opportunities to sustainable in the economy.

Dr. Suprabha K.(2014) The main moto of micro finance is medium- and long-term financial
assistant is empowerment the Self-Help Groups members to enable them to generating employment
opportunities to sustainable in the economy.

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 MICROFINANCE AN INTIATIVE TO PROMOTE A SOCIAL WELFARE

Mahesh kumar M, SudhakarReddy(2015): To the development of Social and economic

activities the Self-help group are necessary to overcome exploitation, create confidence for the
economic self-reliance of rural people. These groups are come together for a common objective
and gain strength from the each other to achieve it. A group becomes the best to do the changes.
With the help of micro finance assistant from the bank.

STATEMENT OF THE PROBLEM:

In recent time microfinance was gaining its importance by providing a small loans to all type of
sector in the economy especially foe women’s microfinance is one of the major reason for
promoting the social welfare now a days women’s are becoming financially independent in both
rural and urban areas however in some areas women’s are illiterate backgrounding and not aware
about the microfinance there this research helps to study about the schemes of microfinance that
gives an assistance to women’s which contributes a major part in the social welfare.

SIGNIFICANCE OF STUDY:

India is a country where women are being provided with plenty of opportunities in order to make
sure she competes with men equally in our society but even today the percentage of women
workforce is much less compared to men in our society/economy so how self-help groups trying
to make women empowered by providing loans to them in form of microfinance.

OBJECTIVES OF STUDY:

1) To study about the working of microfinance.

2) To study the impact of microfinance empowering the social economic status of women and
the development of the social.
3) To study about how microfinance helps women in uplifting their living style.
4) To know about relationship between self-help groups members, microfinance banks &
entrepreneur women.
5) To clarify the limitations of microfinance as a tool for women of empowerment

SCOPE OF THE STUDY:

This study restricts to study about the microfinance and how it helps to the self-help groups
especially among women’s and also it explores social dimension of microfinance and
measuring ats impact on the promotion of social welfare.

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 MICROFINANCE AN INTIATIVE TO PROMOTE A SOCIAL WELFARE

NATURE OF STUDY:

1) This project report mainly deals with the microfinance and how it impacts on the social
welfare especially in women sector.
2) This project report mainly depends upon the primary data provided by the women in
rural and urban areas of Ballari district.
3) This project is based on descriptive method of research.
4) This research was made during the year from 1st January to April 2023.

IMPORTANCE OF STUDY:

 The present study is helpful to study the microfinance as an initiative in promoting the
social welfare.
 This present study is helpful to understand how women are aware about microfinance
benefits and how they are utilizing it.
 To study more about microfinance schemes which is suitable to women.
 To study the benefits of microfinance.
 This present study is helpful to know the how social welfare is developing through the
microfinance.

NEED FOR THE STUDY:

To know about the empowerment of women with the help of microfinance and how they
are working for the progress of social welfare.

LIMITATIONS OF THE STUDY:

1) This study restricted to Ballari district.

2) This study is conducted within a short duration of time.
3) This project report is restricted to only the interpretation of data which is given by the
women’s and in the form of questionnaire and interview. Hypothesis had not to be taken.

RESEARCH DESIGN:

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The research design covers sampling techniques as well as the data collection method that are used
in the research. the area of the interest includes only women in rural and urban areas of Bellari
district.

TARGET AREA:

The main target area is women’s and their opinion about microfinance. Also, it covers the
respondents who have awareness regarding the schemes in microfinance.

SAMPLE SIZE:

the sample size is used for the study around 50 from rural areas and 50 from urban areas in Ballari
district. These samples were taken from Ballari district for this study.

SAMPLING TECHNIQUE:

Convenience sampling is a non-probability sampling techniques where respondents are easy to

select and reach. Hence the convenient sampling technique was used in this research.

SOURCES OF DATA:

This study is based on both primary data and secondary data.

Using the survey method, primary data was obtained from the respondents by administering the
structured questionnaire and interview by communicating with respondents for evaluating the
feedback.

Secondary data is collected from different websites.

DATA COLLECTION METHODS:

QUESTIONNAIRES:

To know the self-help groups how they aware about microfinance especially women’s both the
questions arise include the multiple choice and as well as open ended questions, that questions are
attached in the appendix.

INTERVIEW:

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 MICROFINANCE AN INTIATIVE TO PROMOTE A SOCIAL WELFARE

To provide a more insight and understanding about how microfinance plays a role in promoting the
social welfare. I have interacted with the women of rural and urban areas in Bellari district and
what is their role in empowering the women. The interview was held in an oral manner and also
numerical facts are recorded their responses will be displayed in findings and suggestions.

CHAPTER SCHEMES:

The present research work has been arranged and presented in the following manner, to achieve
the objectives of the study.

Chapter-1: this chapter deals with the “Research design”

As an introductory chapter it attempts to know the title of study, introduction, statement of the
problem, nature, scope, objectives, limitations, significance, importance need, research design of
the study and chapter scheme.

Chapter -2: city profile

Chapter – 3: theoretical background of the study

Microfinance introduction, objectives, advantages, schemes towards women.

Chapter – 4:data analysis and interpretation

Chapter – 5: findings, suggestions & conclusions

BIBLOGRAPHY:

https://vikaspedia.in/social-welfare/financial-inclusion/financial-literacy/microfinance

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