SYNOPSIS

TITLE OF THE PROJECT: “THE SCOPE OF MICROFINANCE IN INDIAN

CONTEXT” WITH REFERENCE TO CANARA BANK

INTRODUCTION
Microfinance is defined as any activity that includes the provision of financial services
such as credit, savings, and insurance to low income individuals which fall just above the
nationally defined poverty line, and poor individuals which fall below that poverty line,
with the goal of creating social value. The creation of social value includes poverty
alleviation and the broader impact of improving livelihood opportunities through the
provision of capital for micro enterprise, and insurance and savings for risk mitigation and
consumption smoothing. A large variety of sectors provide microfinance in India, using a
range of microfinance delivery methods. Since the ICICI Bank in India, various actors
have endeavored to provide access to financial services to the poor in creative ways.
Governments also have piloted national programs, NGOs have undertaken the activity of
raising donor funds for on-lending, and some banks have partnered with public
organizations or made small inroads themselves in providing such services. The range of
activities undertaken in microfinance include group lending, individual lending, the
provision of savings and insurance, capacity building, and agricultural business
development services. Whatever the form of activity however, the overarching goal that
unifies all actors in the provision of microfinance is the creation of social value.

SCOPE OF THE STUDY

1. To study the impact of micro finance in empowering the social economic status of
women and developing of social entrepreneurship.
2. To know about relationship between SHG’s members, micro finance banks and
entrepreneur’s women.
3. To clarify the limitation of microfinance programmes as the tool for women’s
empowerment and the type of support service necessary to maximize the
contribution of microfinance service.
4. To study potential hurdles in the development of women entrepreneurship.

STATEMENT ABOUT THE PROBLEM

“The study of Microfinance in India with special reference to Canara Bank” India is one
of the highly populated countries in the world currently. Reason being unawareness,
illiteracy, avoidance or disinterest; in turn leading to economic downfall and almost 30-
35% of the people are under the Below Poverty Line (BPL). These people are not even
able to meet their consumption need. Therefore there is a need of a tool that not only
serves them but also make them self capable, Microfinance is such an approach that would
result in the better standard of living for them.

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REVIEW OF LITERATURE

1) Mohammed Anisur Rahaman (2007): Has examined that about microfinance

and to investigate the impact of microfinance on the poor people of the society
with the main focus on Bangladesh. We mainly concise our thesis through client’s
(the poor people, who borrowed loan from microfinance institutions) perspective
and build up our research based on it. Therefore, the objective of this study is to
show how microfinance works, by using group lending methodology for reducing
poverty and how it affects the living standard (income, saving etc.) of the poor
people in Bangladesh.

2) Linda Mayoux (Feb 2006): Has examined that Micro-finance programmes not
only give women and men access to savings and credit, but reach millions of
people worldwide bringing them together regularly in organized groups. Through
their contribution to women’s ability to earn an income, micro-finance
programmes can potentially initiate a series of ‘virtuous spirals’ of economic
empowerment, increased well-being for women and their families and wider social
and political empowerment Banks generally use individual rather than group-based
lending and may not have scope for introducing non-financial services. This means
that they cannot be expected to have the type of the focused empowerment
strategies which NGOs have.

3) Dr. Jyotish Prakash Basu (2006): Has examined that the two basic research
questions. First, the paper tries to attempt to study how a woman’s tendency to
invest in safer investment projects can be linked to her desire to raise her
bargaining position in the households. Second, in addition to the project choice,
women empowerment is examined with respect to control of savings, control of
income, control over loans, control over purchasing capacity and family planning
in some sample household in Hooghly district of West Bengal. The empowerment
depends on the choice of investment of project. The choice of safe project leads to
more empower of women than the choice of uncertain projects.

4) Srinivasan, Sunderasan (2007)

Has examined that micro banking facilities have helped large numbers of developing
country nationals by supporting the establishment and growth of microenterprises. And
yet, the microfinance movement has grown on the back of passive replication and needs to
be revitalised with new product offerings and innovative service delivery. Renewable
Energy systems viz., solar home systems, biogas digesters, etc., serve to improve indoor
air quality, provide superior light and extend working and study hours.

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It is a game plan for
conducting research. In this we describe various steps that are taken by the researcher.
“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry and inquiry leads to invention.”

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Research in a common parlance is a search for knowledge. Research is an art of scientific
and systematic investigation. Thus research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data,
making deductions and reaching conclusions. Research methodology is the arrangement
of condition for collection and analysis of data in a manner that aims to combine relevance
to the research purpose with economy in procedure. Research Methodology is the
conceptual structure within which research is conducted. It constitutes the blueprint for the
collection measurement and analysis of the data.

Research methodology is a framework for the study and is used as a guide in collecting
and analyzing the data. It is a strategy specifying which approach will be used for
gathering and analyzing the data. It also includes time and cost budget since most studies
are done under these two constraints. The research methodology includes overall research
design, the sampling procedure, the data collection method and analysis procedure.

 TYPE OF RESEARCH USED:-

Descriptive Research: In the study descriptive research design will be used. As
descriptive research design is the description of state of affairs, as it exists at present. In
this type of research the researcher has no control over the variables; he can only report
what has happened or what is happening
Descriptive research designs are those design which are concerned with describing the
characteristics of particular individual or of the group. In descriptive and diagnostic study
the researcher must be able to define clearly what he wants to measure and must find
adequate method for measuring it.

 METHOD OF DATA COLLECTION

After the research problem identified and selected the next step is to gather the requisite
data. While deciding about the method of data collection to be used for the researcher
should keep in mind two types of data i.e. primary and secondary.

TYPES OF DATA

PRIMARY SECONDRY
DATA DATA

Primary Data
The primary data are those, which are collected afresh and for the first time, and thus
happened to be original in character. We can obtain primary data either through
observation or through direct communication with respondent in one form or another or
through personal interview.

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 PRIMARY

OBSERVATION INTERVIEW QUETIONAIRE SCHEDULE

METHOD METHIOD METHOD METHOD

Secondary Data: The secondary data on the other hand, are those which have already
been collected by someone else and which have already been passed through the statistical
processes. When the researcher utilizes secondary data then he has to look into various
sources from where he can obtain them. For e.g. books, magazine, newspaper, internet,
publications and reports. In this study data have been taken from various secondary
sources like:
 Internet
 Books
 Magazines, and Newspapers
 Journals

LIMITATIONS OF THE STUDY

 The study will be holds good only for the time period the project will undertake.
 Study will be focused mostly on Canara Bank, Head Office.
 The data recorded is presumed to be authentic and information collected mainly from
secondary sources.
 Lack of comprehensive data about the future plans.
 Lack of information which is confidential in nature prevented an in-depth study of the
positive and negative effects of microfinance.

REFERENCES

Books
1) Debadutta kumar Panda, Understanding Microfinance
2) Microfinance perspectives and operation by Macmillan publication for Indian institute
of banking and finance.
3) A report on Dhaka Starting Microfinance in India – Vijay Mahajan, Bharti Gupta
Ramola and Mathew Titus , Basix.
4) Research paper by Prabhu Ghate Research paper by Vishal Sehgal Presentation by N.
Srinivasan.

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Websites
www.canarabank.com
www.google.com
www.scribd.com
www.microfinanceindia.org
www.microfinanceinsight.com
www.investopedia.com
www.books.google.com
www.seepnetwork.org
www.nationmaster.com
www.thaindian.com
www.authorstream.com
www.knowledge.allianz.com
www.familiesinbusiness.net
www.indiamicrofinance.com