Findings

36% of the respondent have availed loan to fulfill basic needs, 12% have availd loan to

invest in business and 51% have taken loan to purchase cattle, for agriculture purpose,

for daughters marriage, for house renovation etc.

2. 68% of the total respondents are aware of microfinance institute such as ICICI BANK ,

AXIX BANK, HDFC etc. and 42% of the respondents are aware of only those MFI from

where they have taken loan or connected with.

3. 44% of the total respondents have said that it is helpful in setting up a small

business.19% of the respondents have said that it can enable women for self employment.

19% of the respondents have said that it helps in daily home requirements and only 2% or

3% of the total respondents have said that it is helpful in education and health

requirements,13% of the respondents have given other advantages such as they can

improve their standard of living, they can enjoy their savings, they can be a part of good

training programme etc.

4. More than 45% of the total respondents have borrowed less than and equal to Rs 60000

as per their needs ,30% of the total respondents have borrowed loan of Rs 60000 up to Rs

100000. 13% of the total respondents have taken loan of Rs100000 up to Rs 150000. 9%

of the total respondents have taken loan above Rs 150000.

5. There are 60 respondents who have joined SHG group and taken loan from banks such as

BOB, GRAMIN BANK and SBI. There are 10 respondents who have joined JLG group

and taken loan from banks such as BOB, GRAMIN BANK and SBI, other 30% of the

total respondent have taken loan individually from the bank directly without joining any

group.

6. More than 30% of the respondents have preferred monthly repayment of the loan ,22% of
the respondents have preferred quarterly repayment of loan, very few that is only 3% of

the total respondents have choose to pay the amount of loan yearly, 33% of the

respondents who have chosen others, they repay their loan weekly or when the get

money to pay.

7. 93.75% of the total male have taken Microfinance service from the SBI Bank individually

without joining any group, rest 6.25% of the total male have taken loan from Gramin

Bank by joining JLG group.

8. 55.88% of the total Female respondents have taken loan from Gramin Bank and out of

this 55.88% female 78.94% of the total Female respondents have taken loan by joining

SHG group and rest 21.05% of the total female respondents have taken loan by joining

JLG group.

9. 44.12% of the total female have taken Microfinance service from the Bank of Baroda by

joining SHG group.

10. Bank Of Baroda is more active in providing microfinance service as compared to other

banks.

11. Interest rate charged by the MFI s are appropriate to those who take loan directly without

joining any group but interest rate is higher when a person avail loan by joining any

Group such as SHG or JLG or any other group.

12. The default according to various Bank is more but only 33% of the total respondents are

there who fail to repay their loan on time.

13. According to MFI s they do not get government support but almost 90% of the respondents

are satisfied with the government support.

14. According to total respondents microfinance is very much helpful in increasing the
income level of rural people and it also helps to maintain social and economic status in

rural area. But they are very much unsatisfied with the interest rate charged by the MFI S .

15. According to the Kruskal-Wallis Test the significance value 0.780. Which is greater than

level of significance value (0.05) so H0 is accepted. Which indicate that there is no

difference among various age groups in their perception towards microfinance.

16. According to the Kruskal-Wallis Test the significance value 0.368. Which is greater than

level of significance value (0.05) so H0 is accepted. Which indicate that there is no

difference among various age groups in their perception towards microfinance.

17. According to the Kruskal-Wallis Test the significance value 0.455. Which is greater than

level of significance value (0.05) so H0 is accepted. Which indicate that there is no

difference among various occupation groups in their perception towards microfinance.

18. According to the chi-square test the chi-square value 0.00 which is less than level of

significance value (0.05) so H1 is reject. Which indicate that there is association between

amount borrowed and purpose to avail microfinance service.

19. According to the chi-square test the chi-square value 0.00 which is less than level of

significance value (0.05) so H1 is reject. Which indicate that there is association between

gender and purpose to avail microfinance service.

20. According to the chi-square test the chi-square value 0.003 which is less than level of

significance value (0.05) so H1 is reject. Which indicate that there is association between

annual income and purpose to avail microfinance service.

21. According to the chi-square test the chi-square value 0.725 which is greater than level of

significance value (0.05) so H0 is fails to reject. Which indicate that there is no

association between occupation and purpose to avail microfinance service.

22. According to the chi-square test the chi-square value 0.000 which is less than level of

significance value (0.05) so H1 is reject. Which indicate there is association between

gender and the bank from which they have taken loan to fulfill their short term fund

requirements.

23. According to the chi-square test the chi-square value 0.000 which is less than level of

significance value (0.05) so H1 is reject. Which indicate, there is no association between

group and bank from which they have taken loan to fulfill their short term fund

requirements.

9. RECOMMENDATION

1. There is a strong need to create, develop and promote microfinance culture and assert

its role as a major element in the process of national economic uplift and self-reliance.

2. Government should give importance to the MF by the Public sector banks as public

have more trust on the government banks than on Private sector banks.

3. MFI s should target those who are also talented entrepreneurs. Government can

directly help poor by giving direct loans or indirectly by way of providing guarantee

for their loans.

4. Government should rethink upon interest rate charged on borrowed money.

5. Continuous monitoring on MFI s is must.

6. Supporting staff should be provided to SHG representative and livelihood managers.

7. Government and Microfinance institutes must make ethical guidelines for the

Recovery purposes of the loans as it is one the important variable which should be
taken in consideration.

8. MFI should make the product in such way that fulfils the requirement of the different

needs of different people.

10. CONCLUSION

Microfinance helps poor people in raising their income levels and improves standard of

living. Microfinance activities can give them a means to climb out of poverty.

Microfinance could be a solution to help the needy people to extend their horizon and

offer them social recognition and empowerment .The aim of MF is to develop habits and

the financial vision among the rural and urban poor, such that they are able to save, seek

credit and know several finance related aspects and thus improve their financial position

and living standard.