The social impacts of informal loan system: a sociological study based on Nintavur divisional secretariat area

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.