A study on the issues and challenges of microfinance institutions and their performance with respect to rural women self help groups in erode district

Abstract

The present work entitled A study on the issues and challenges faced by microfinance institutions and their performance with respect to rural women self help groups in Erode district was an attempt to find the issues faced by microfinance institutions and women self help groups with the microfinance services. Microfinance is one of the services provided by banks and Non- Government Organizations for improving the psychological needs and financial needs of poor people. The main aim of microfinance is to reduce poverty among poor people thereby increasing the status of poor. Microfinance institutions play a major role in providing financial support to the deprived poor. The poor people especially women are organized in groups by themselves or by Non Government Organizations. They are termed as Self Help Groups. Microfinance Institutions lend their services to Self Help Groups which are utilized by them for their development. Provision of microfinance services could lead to empowerment of women. There are many issues and challenges faced by both Microfinance institutions and Self Help Groups. In this study, the issues and challenges faced by microfinance institutions and the problems faced by Self Help Group members were studied individually. This study focus on the Self Help Group members in rural areas and the population study is made with respect to Microfinance Institutions in Erode District. The researcher collected primary data from Microfinance Institutions. Descriptive research design is used in data collection. This study could help both the microfinance institutions and Self Help Groups to overcome their issues and challenges which could help in newline