International Research Journal of Education and Technology

Finance has been recognized as the lifeblood of all economic activities; like all other businessman, rural entrepreneurs also need finance but do not have access to formal credit institutions. In this situation, micro-finance helps rural entrepreneurs to find capital for their businesses. Micro-Finance emphasises on the capacity building of micro-entrepreneurs, employment generation through business expansion, and other skill development programs. Micro-Finance act as a tool for socioeconomic development in Rural sector, and it serves as an incredible instrument for giving a sustainable livelihood for crores of rural people who are not able to find a means of livelihood. The current research paper aims to analyse the availability of Micro-Finance and its effectiveness on rural development with special reference to Karthikapally Taluk of Kerala. The paper mainly concentrates on how Micro-Finance from various institutions has contributed to the overall development of rural villages. The stratified random sampling method has been used for selecting the sample. A survey method using an interview schedule has been employed for collecting primary data from 200 respondents who are the users of micro-finance schemes in Karthikapally taluk. The collected data has been analysed and interpreted using percentage analysis and the chi-square test to arrive at proper conclusions. The research paper concludes that the relationship between the availability of microfinance and its effectiveness is highly significant.

Key Words: Rural Development, Rural credit, Micro-Finance, Micro credit.