A Study on Social Performance of Microfinance Institutes: A Consumer Perspective

Abstract

The objective of the paper is to conduct a comparative study on the social performance of MFIs in rural and urban areas in various districts of Kerala and analyze the overall impact of micro financial services on the lives of respondents in these areas. The study is undertaken in rural and urban areas of four districts in Kerala using primary data. A total of 110 samples were collected from the districts of Alappuzha, Kollam, Pathanamthitta and Ernakulam. The analysis shows that the borrowers have seen an improvement in their standard of living because of the financial assistance provided by microfinance institutions. The comparison of the rural and urban areas shows that there are considerable differences as people in urban areas are more beneficial from the service provided by MFIs and the main reason behind this is their income status. The people in urban areas have high financial backup as compared to rural areas, so they are more benefitted from the loan facilities availed from MFIs to start their own ventures.