Research Journal of Applied Sciences

Year: 2020
Volume: 15
Issue: 1
Page No. 1 - 9

Effectiveness of Microfinance Institutions on Rural Poor Households and its Impact on Reduction of Poverty: A Tool for Socio Economic Development in Rural India

Authors : Manish Madan

Abstract: The main aim of the study to understand the socio economic factors of rural poor households that leads to lending of funds from microfinance institutions, to analyze the impact of microfinance on the income of rural poor households living in villages of Gurgaon district in Haryana. The study also investigates the importance and role of microfinance in the reduction of poverty among the rural poor households of Gurgaon district. This study investigates the socio economic growth of microfinance sector among the rural poor households living in the villages of the Gurgaon district of Haryana and also the framework of microfinance programs for rural poor households. To cater the need of the research, the researchers have used primary data through selfconstructed structured questionnaire and as far as the secondary data is concerned that was obtained from various reports, web sites and journals, etc. The study is exploratory in nature and studied using panel and pooled data. A systemized and organized study was done to reach the desired objectives of the study. The responses obtained from the respondents, i.e., villagers from 50 villages of Gurgaon district in Haryana using various statistical techniques. Purposive and Judgment sampling technique was used to gather data from the respondents. SAS (Statistical Analysis Software) Version 9.2 and SPSS Version 21 are used for data analysis which includes regression analysis, OLS regression model, Logit and Probit models of regression. The significance of this study is that it focuses on exploring the Socio Economic Growth of Microfinance Sector in India and framework of Microfinance Programme in Rural Poor Households of India and understanding the socio economic factors of rural poor households leading to lending of funds from microfinance programs.

How to cite this article:

Manish Madan , 2020. Effectiveness of Microfinance Institutions on Rural Poor Households and its Impact on Reduction of Poverty: A Tool for Socio Economic Development in Rural India. Research Journal of Applied Sciences, 15: 1-9.

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