MICRO FINANCE: A POSSIBLE SOLUTION FOR LOW INCOME SOCIETY

Micro-finance: A Possible Solution to Support to the Low Income Segment of Societies



Table of Contents

Chapter 1: Introduction3

Focus of the study3

Research Rationale3

Research Questions4

Chapter Three: Methodology11

Research Design11

References14

Bibliography16

Micro-finance: A Possible Solution to Support to the Low Income Segment of Societies

Chapter 1: Introduction

Focus of the study

Micro finance is one of the revolutionary economic inventions of 20th century. This loan pro?ect is aimed at the people who are unable to apply for traditional bank loans. It works as a platform for the unemployed people to self employment. Especially the low income segments of societies has been benefited by Micro finance. Micro finance has opened the door of prosperity for them to have small earnings which provide them position in family, society and community. The following ob?ectives will be examined in this paper-

To review extant conceptual models and theoretical frameworks related to Micro finance institutions in the low income segments of societies.

Doses availability to Micro finance enable low income segment of societies to succeed?

Is there any significant link between access to Micro finance and business success?

Research Rationale

To critically evaluate the various aspects of Micro finance, how it is able to change the lives and professions of low income segments of societies, its impact on them and its effect on their role as small entrepreneurs.

Review the literatures done on Micro finance and focusing specifically on poor, affected by that.

Justify the criticisms and make recommendations on changes required to make it more effective for low income segments of societies to strengthen their power in family, community, society, country and above all financially.

Research Questions

To what extant do the Micro finance organisations are working in low income segments of societies, throwing light on their situation?

How much Micro finance works for the low income segments of societies to succeed in retail?

Has this success been effectively brought by Micro finance?

Chapter 2: Literature Review

Studies related to low income segments of societies have found that apart from economic impact, access to Micro finance has had substantial impact on equality (Padaki, 2004). It is necessary to complement credit-delivery with social awareness raising, building confidence and self-esteem among low income segments of societies. According to Kalpana (2006) though Micro finance alone is not sufficient in succeeding income low income segments of societies, still it is one of the very important ingredients in that process.

Gubrium (2000) has found that, Micro finance schemes have had substantial, through the enhancement of poor people's position in decision-making on household expenditures and family planning. It has been found, among others, that mobility of low income segments of societies has improved dramatically.

Kalpana (2006) suggests that the strength of Micro finance lies in its ability to organize i low income segments of societies into a productive workforce with their proven creditworthiness.

Padaki (2004) says that microfinance has been very effective in mobilizing savings from the poor borrowers. Overall, the impact of Micro finance has been very positive. Micro finance is an important financial instrument to generate economic ...