MICROFINANCE AND ITS SOCIAL ACCEPTABILITY: A CASE STUDY AMONG THE VILLEGES UNDER DHEKIAJULI BLOCK, SONITPUR, ASSAM

Abstract

Development of a country is mainly dependent on the availability of financial resources, as it has the capability to encourage productive sources. Microfinance has been working as a helping hand towards the upliftment of living standard of people in rural areas. Microfinance is a small source of financial services which was introduced to stabilise earnings of people with productive investment.

At present it has been seen that people are borrowing more to meet their personal use rather than investing in productive sources, which encouraging more debt than earning. In this study researcher wants to identify the reasons behind the non-acceptance of MFIs in the society according to its main motives. This study has been carried out on the basis of primary data. Due to some communication gap between service provider and the receiver people are still unaware of the meaning of productive nature. So, they failed to utilised borrowed fund in its best possible way. Because of some employee’s irresponsible nature also productive investment is still far away from reality. So, it’s been suggested by the researcher to train their personnel properly before sending them to the field. It is also important to design their service in such a way which can bound borrowers to invest at least half of their borrowings in productive sources which will help them to repay on time.