Impact of microfinance on socio economic development evidence from south India

Abstract

The role and impact of microfinance in the socio economic development of the low income people who are not credit worthy has been assessing and exploring by researchers for its sustainable operation and the development of formal financial system. The study explores the socio economic development of microfinance in South India. The objectives are based on variables like financial inclusion, employment and earning opportunities, social inclusion, economic development. social development, personal development. family relationship, economic newlineresilience, social capital, and well-being. The scope of the study is limited to the newlinebeneficiaries of microfinance in four states, namely Andhra Pradesh (undivided),Karnataka, Tamil Nadu and Kerala. The sampling method used in the study is non probability sampling technique of purposive sampling. Both primary and secondary data are used and it is found that microfinance has contributed to financial inclusion, social inclusion and employment and earning opportunities. Besides it has supported substantially social developinent and moderately economic development of the beneficiaries. Further it is noted that it has positive effect on personal development, and family development. Thus it has contributed to develop economic resilience and social capital among low income people which ultimately sustain their well-being, The major findings of the study are: is found that social inclusion, employment and earning opportunity and newlinefinancial inclusion have a significant influence on social development. It is explored that the financial inclusion and employment and earning opportunity can predict the economic development. It is concluded that the financial inclusion and employment and earning opportunity have a significant influence on the family relationship. It is found that the financial inclusion, employment and earning opportunity newlinecan predict the Personal development. It is observed that the personal development newlineand social development can predict the social capital.