Abstract:
The role of the economy is the most important in sustaining the well-being of man.
Therefore, this is the primary task of fulfilling the basic needs of man. Our research area being one
the past war-tone area it still experiences its major impacts. Due to this, the people in this area faced
the cruelties like loss of life, amputation, mental affect, uncertain future, displacement and refugee
life, and the insecurity like fear, and threats, the struggle, unavailability of basic needs like education,
health, transport, food and residence and disorders of family relationship, surroundings and
environment and major destruction of properties. They are also looking forward to an economic
problem that cannot be addressed to the basic needs. Poverty has serious impacts on the levels of
living of the people. Microfinance is now globally recognized as an effective tool for reducing
poverty. It has shown positive results in many countries, however, microfinance services have not yet
positive results to the Eravur pattu rural people. The division is consisting 39 GS divisions and it has
the families of 21145. Most families are able to commence self-employment and daily wage
employment activities for their livelihood in this region. In the situation, some private companies are
competing for the purpose of entering these people to pay a fixed amount of money on a daily basis,
weekly and monthly loan with a higher interest rate. People who do not know it spend a certain
amount of money and cannot afford it again with interest. Thus they are losing their lives and
property. The project to act as an instrument of economic growth can be traced to losses. Many
finance companies provide micro finance services towards women in this area. Asia asset finance
PLC, Pimbuth finance PLC, Brac Lanka finance PLC, Kanrich finance limited, Merchant bank,
Nation Lanka Finance PLC, Prime Grameen Micro finance limited and Commercial credit & finance
PLC are some of them. In the context of the Eravurputu Divisional Secretariat Division with such
background; women have been faced able to find many problems by micro credit loans. Therefore,
Awareness on this matter is essential to people. This study has been undertaken by this background.
