A survey on awareness and knowledge of Islamic microfinance in India
Microfinance provides financial services to small businesses and poor individuals who lack access to conventional banking. Conventional microfinance institutions have expanded their operations in the last two decades. Among the many factors that were responsible for the microfinance crisis in In...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
International Journals of Multidisciplinary Research Academy
2019
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/75399/ http://irep.iium.edu.my/75399/ http://irep.iium.edu.my/75399/1/75399%20-a%20Survey%20on%20Awareness%20and%20Knowledge%20of%20islamic%20microfonance%20in%20india.pdf |
| Summary: | Microfinance provides financial services to small businesses and poor
individuals who lack access to conventional banking. Conventional
microfinance institutions have expanded their operations in the last two
decades. Among the many factors that were responsible for the microfinance
crisis in India, one major factor was the high interest rate which still
continues to exist. The giants of Microfinance in India until today are known
to be charging high interest rates. Approximately 77% of India‟s population
continues to be below poverty line. Moreover, on looking into the population
of the financially excluded, the majority of them are Muslims who are of the
belief that giving or taking of interest is not permissible. Hence, study on
interest free or Islamic microfinance in India can help eradicate poverty not
just among Muslims but in India as a whole. This study aims to gauge the
awareness and knowledge of Islamic microfinance among the general public
of India. The results of this study will help translate into actions in areas
needed for in depth penetration and acceptance of Islamic microfinance in
India. The paper adopts a Quantitative approach where Questionnaire is
distributed online by way of random sampling and 303 responses were
received. Data is analyzed using SPSS22 software. The findings show that in
general the public is aware of the term Islamic microfinance but with regards
to the products and services offered by Islamic microfinance institutes, the
level of awareness is very low. This gives an insight to in which direction the
attention and efforts are currently needed to raise public awareness of Islamic
microfinance. |
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