The micro credit and problems faced by women: a study based on Eravur pattu divisional secretariat – a sociological study

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.