Micro-Finance for Rural Livelihood in District Hoshangabad of Madhya Pradesh

Kinjulck C. Singh, C.J. Singh and Abhay Wankhede


Rural life faces a very limited flow of cash and local moneylenders are the only source of credit which results into exploitation of various kind. Instituitional micro-finance for rural entrepreneurship to farm and non-farm sectors assure timely availability of credit in form of cash or kind at nominal rate of interest. To understand money utilization pattern of the micro-finance by the beneficiaries, their attitude and repayment pattern, this study was undertaken. The study shows that maximum beneficiaries of the micro-finance belonged to farm sector (71.2 percent). A fair 89.39 percent of the beneficiaries utilized the micro-finance in the same enterprise, which they have demanded for. Majority (83.33%) had highly favourable attitude towards micro-finance. The repayment pattern with 11.36 percent increased for credit up to Rs. 5000/- and 24.2 percent increased for more than Rs. 5000/- was found quite encouraging. The study concludes that rural livelihood can be best supported by institutional microfinance

Keyword: Rural life; Flow of cash;

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