Socio-Economic Development Through Micro Finance in Rural areas with special reference to Dhemaji district of Assam
DOI:
https://doi.org/10.31305/rrjss.2022.v02.n01.010Keywords:
Microfinance, Socio-Economic Development, Dhemaji District, Rural Empowerment, Self-Help Groups (SHGs)Abstract
This study explores the role of microfinance in promoting socio-economic development in the rural areas of Dhemaji district, Assam—a region marked by geographic isolation, frequent flooding, and economic underdevelopment. Microfinance, primarily delivered through Self-Help Groups (SHGs), Microfinance Institutions (MFIs), and government-supported programs like the Assam State Rural Livelihoods Mission (ASRLM), has emerged as a vital tool for poverty reduction, women empowerment, and financial inclusion. The study consists of the primary and secondary data, which has been achieved by means of the surveys, interviews, and official documents. A survey of 100 microfinance clients mainly women across different blocks of Dhemaji was carried to see through the changes after coming under microfinance in terms of their income levels, mode of earning, their savings pattern, literacy level, health and decision-making abilities. The findings show a significant improvement in household income (by 65%), women’s participation in decision-making (up from 28% to 70%), and financial access (85% now have bank accounts). The research, however, identifies other challenges as low-level of financial literacy, cross financing of the loans, poor post loans services and the weather-related vulnerability as well. Even with these, microfinance has come out as a viable means of improving livelihood in the rural areas as well as empowering people in Dhemaji. The study concludes with recommendations to strengthen microfinance systems through better monitoring, capacity-building, and disaster-resilient financial planning to ensure sustainable and inclusive growth for the district's rural population.
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