A Study of Factors Influencing the Social Development of Women for Microfinance Borrowers | Original Article

ABSTRACT:

A significant role is played by financial system in economic transformation of a nation. It acts as an intermediary between borrower and lender, provide various saving opportunity with different riskreturn characteristics. It bridges that gap between the present and future and mobilizes the savings into productive channels of investment. Financial system comprises of financial institutions, stock market, pension fund, insurance sector etc. Developing countries give more importance to expansion of financial sector and its coverage in an effort to reduce poverty. For country’s prosperity, its growth is at most important. Effective mobilization of savings, smooth payment system and efficient distribution of resources are key drivers for this sector. Financial system helps the financial market to expand over a period of time. It facilitates effective distribution of resources among productive and socially desirable purpose in an economical manner. Financial institutions such as banks are an essential element for a country’s financial system. They play a pivotal role in progress of rural provinces of Indian economy. Finance is the key element in achieving the long-term prosperity of a country. It is an important requirement to meet the credit needs of every sector i.e. agriculture, manufacturing, trade and other services for smooth functioning of their day to day operations and for growth as well.