Abstract:
It seems the penetration of Informal sectors into all parts of the world is
unavoidable today. These Informal sectors give loan especially to rural people to
fulfill the increased economic needs of them and become an important resource.
This informal loan system causes both positive and negative situations in the
society. This research was found out the social and economic effect by informal
loan system in Nintavur area. Qualitative Method and Quantitative Method have
been used to collect the data for this research work. They also have collected
Primary Data and Secondary Data. Primary data were collected through a survey
of questionnaires, interview, observation, Focus Group Discussion and 20
Questionnaire sets that were given in a certain area in Nintavur on purposive
sampling. Split among the social relationship, degradation in the social status,
family deterioration, divorces, women going out to foreign countries, sexual
abuses, attempting to commit suicides, disappearing from the society, children are
going astray, deterioration of culture and characters, desecration or religious ethics,
bad effect in the children’s educational activities, increased interests, shortage of
income, poverty, struggling to manage the cost of living, stoppage of savings and
lost of properties etc.. are negative results that have been created by this informal
loan system in Nintavur area.
