THE CONTRIBUTION OF MICRO-FINANCE BANKS TO THE ECONOMIC WELL BEING OF RURAL DWELLER
ABSTRACT
The purpose of this study is to identify the contribution of microfinance bank to the economic wellbeing of rural dweller using Alheri Microfinance Bank Limited as a case study. The establishment of the Micro-finance bank with their peculiar characteristics that enables their customers to make the savings and to obtain loan with little or no collateral is a booster to the scarcity of funds for investment among the poor, especially in the rural area. In strict sense, the micro-finance banks are not banks at all, since their operations are abbreviations to what is obtained in convectional banks, as regards rules and regulations guiding banks, their duties in general and their profit orientation altitude. The role of micro-finance banks in Nigeria to the rural dwellers is nothing to write home about and those who intend to set up micro-finance banking business in future. In addition, the findings from this research study shows that microfinance banks have not identified themselves adequately with rural dwellers, cooperative societies and export financing to transform in the Nigeria economy into meaningful development this area should not be neglected to commercial banks and traditional money lenders in terms of financing and investments.
CHAPTER ONE
1.0 Introduction
1.1 Background to the Study
The federal government of Nigeria in the 1990 budget speech decided to establish micro-finance in order to stretch its programme of grass-roots economic development. The aim of this study is to make a research on the contribution of microfinance banks to the economic well being of rural dwellers in Nigeria.
The micro-finance bank scheme which has started years ago received recognition as social economic venture designed to address poverty and aimed at motivating and encouraging the rural dwellers to improve their standard of living through proper use and management of resources generated in their communities.
Alheri microfinance bank was the first micro− finance bank in Kaduna State. The project took off in the country with a mandate from the presidency to improve the lost of people through credit facilities devoid of conventional banking bottle necks and its operating capital boss supplied by unfired community.
This community provides the building for the operation and the management staff a well ass the board and the trustee. The idea is that when such collective money is given out as loans, there won’t be much difficult in recovering it back as at when due.
Micro finance bank has evolved as an economic development approach intended to benefit low income women and men in the rural areas. The term refers to the provision of financial services to low − income earners, including the self − employed. Financial services generally include savings and credit; however, some microfinance organizations also provide insurance and payment service.
Microfinance banking is not simply banking, it is a development tool.
Micro finance activities usually involve:
- Small loans, typically for working capital.
- Informal appraisal of borrowers and investments.
- Collateral substitutes, such as group guarantees or compulsory savings.
- Access to repeat and longer loans, based on repayment performance
- Streamlined loan disbursement and monitoring
- Secure savings products
Although some Microfinance banks provide enterprise development services, such as skills training and health care, these are not generally included in the definition of micro finance.
Microfinance banks can be non governmental organizations savings and loan cooperation’s, credit unions, government banks, commercial banks, or non bank financial institutions. Micro finance bank clients are typically self employed low income entrepreneurs in both urban and rural areas. Clients are often traders, street vendors, small farmers, service providers (hairdressers, rickshaw drivers) and artisans and small procedures, such as blacksmiths and seamstress. Usually their activities provide a stable source of income (often from more than one activity). Although they are poor, they are generally not considered to be the poorest of the poor.
Money lenders and relating savings and credit associations are informal microfinance providers and important sources of financial intermediation.
1.2 Objectives of the Study
The general objective of this study is to determine the contribution of microfinance bank to the economic wellbeing of rural dwellers:
- To reveal the contribution of micro-finance banks on rural dwellers and benefit of Alheri microfinance Bank Limited, Kaduna to the people of Kaduna and its entire environment.
- To determine the extent to which accessibility to micro credit has increased the household income of rural dwellers in Kaduna metropolis.
- To examine the contribution of micro finance bank on asset acquisition and saving of rural dwellers in Kaduna.
1.3 Statement of the Problem
The major problem necessitating this study arose from the Central Bank of Nigeria’s laws, regulation, supervision and central placed over the activities of micro finance banks which are:
- These relive the micro finance and every micro finance bank is accepted with respect to their proper books of account and it must be submitted to the National Board not later than 28 days.
- Another problem can be seen in its books and affairs because it is a fully fledged banks, it books and affairs are subject to continuous examinations by Central Bank working through natural board for micro finance banks.
- Equally, not later than four months after the end of its financial year, each micro finance bank must submit to the National Board and exhibit prominently to the view of all members of the micro finance banks balance sheet and profit and loss account
1.4 Statement of Research Hypothesis
The following hypotheses serve as a basis of the questions to be answered for the study.
Ho: There is a significant relationship between micro-finance bank and the economic development of rural of dweller.
H1: There is no significant relationship between micro-finance bank and the economic development of rural of dweller.
1.5 Scope of the Study
With available data on microfinance banking on rural dweller, the case study will focus its attention on the management system of Alheri Microfinance Bank Limited, Kaduna and suggest wages by which the micro-finance banking system can be improved.
1.6 Limitation of the Study
This research work shall be limited to the contribution of micro-finance banks to the economic wellbeing of rural dwellers.
The following are the limitation that hinders the study of this research work;
Financial Constraints:
There are not enough funds to fuel the study of this research work. The researcher has access to a very little source of fund.
Time Constraints:
Due to the limited time available to carry out this research work, it is not possible to carry out the research extensively as anticipated by the researcher.
1.7 Definition of Terms
Micro Finance:
A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance
Bank:
A financial establishment that invests money deposited by customers, pays it out when required, makes loans at interest, and exchanges.
Rural:
This means a characteristic of the countryside rather than the town.
Contribution:
This refers to the something that is given in order to help achieve or provide something.
Rural Dwellers:
These are people living in rural areas.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
The Contribution of Micro-Finance Banks to the Economic Well Being of Rural Dweller can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
Disclaimer for Complete Material Utilization
The displayed research work titled "The Contribution of Micro-Finance Banks to the Economic Well Being of Rural Dweller" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can this topic “Gender Ideology and Social Crises in Ifeoma Okoye’s Behind the Clouds and Men Without Ears” be used for English Language Project?
Yes it can be utilized for research — Academic exploration into gender issues in literature and culture has taken a new dimension. The trends in writings and discourses have been to observe the female sex at domestic background. The roles played by the women as mothers, sisters, custodian, home managers, family maintainers are enumerated through character portrayal in literature. Also, female writers have gone beyond exposing the inequality among females and males in the society as they have started exposing the ills of society thereby correcting them. This essay using the sociologist framework examines theories of social problems and gender disparity as treated in the novels of Ifeoma Okoye. …
Can the material for “Hospital Management Information System” be used as a guide for Computer Science Education Project?
Yes it can be used — Hospital Management Information System (HMIS) is refers to a computer based system that provides hospital with the tools to organize evaluate and efficiently manage departments within the hospital. MIS has five parts namely: hardware, software, procedure, people and data. The method adapted in carrying out this work is the “structures system analysis and Design”, this includes stating and defining the problem at hand of the existing manual system, performing feasibility studies and analysis of this propose computer based system. The research work will further use the database management software. This project work will develop a computer based hospital management information system for Myom Hospital. It will also replace the existing manual system of information and record keeping currently in the …
Can this topic “The Midwife-led Continuity of Care on Women and Babies during the Postnatal Period” be used for Midwifery Project?
Yes it can be utilized for research — The study scrutinized the Midwife-led Continuity of Care on Women and Babies during the Postnatal Period. In achieving this aim, the following specific objectives were laid out to examine the potentiality of midwives adherence to midwifery continuity of care on Women and Babies during the Postnatal Period and determine whether the midwives are having positive thinking and potentiality to adhere to Midwife-led Continuity of Care or not. Midwife-led continuity of care has generally improved continuity of care over a period of time. However, the general literature on continuity notes that a lack of clarity in definition and measurement of different types of continuity has been one of the limitations in research in this field. It is mostly accepted that Midwife-led …
Can the material for “Effects of Infrastructure on the Development of Education” be used as a guide for Education Project?
Yes it can be used — The main purpose of this study was to examine the effects of infrastructures on the development of education in Egbedore Local Government in Osun State. A hundred respondents were chosen at random. The instruments used for this study were the questionnaire and personal interview. Data collected were analyzed through the use of percentages and frequency distribution tables. This work showed that there was a tripartite approach to infrastructural administration in Nigeria and it affected educational development in Egbedore Local Government. The three tiers of government (federal, state and local) are involved in the provision of infrastructures at local government level. Local government plays major role in administration of these services because apart form providing their own infrastructures, they also act as agents …
Can the material for “Rights and Obligation of Parties Under the Contract of Carriage of Goods by Sea” be used as a guide for Law Project?
Yes it can be used — Transportation is an integral factor in international trade and the contract of carriage of goods by sea, forms part of the complex web of transactions witnessed at international trade. The purpose of this project is to illuminate the nature and the inherent features present in the contract of Carriage of Goods by Sea and to also highlight the rights as well as the duties owed by the parties. It also seeks to point the obligations the law imposes on the parties as well as the liabilities they would incur on the event of breach in this form of contract. …
Can the material for “Effect of Demonstration Method and Guided Discovery Method on the Academic Performance of Students in Biology in Senior Secondary Schools” be used as a guide for Education Project?
Yes it can be used — The study was carried out to identify the Effect of Demonstration Method and Guided Discovery Method on the Academic Performance of Students in Biology in Senior Secondary Schools. In achieving this aim, the following specific objectives were laid out to determine the effect of using Demonstration method in teaching biology, find out students’ level of understanding biological concepts and investigate students’ performance in biology using each of the methods. The sample consisted of 133 SSIII Biology students selected from four senior secondary schools in Alimosho Local Government Area of Lagos State based on random sampling techniques. Primary data were collected from the primary source which questionnaire was used as an instrument of data collection while secondary data were sources from …
Can this topic “The Challenges, Problems and Prospects of Outsourcing Human Capital in Nigeria” be used for Business Administration and Management (BAM) Project?
Yes it can be utilized for research — This study focuses “The problems, challenges, and prospects of outsourcing human capital in Nigeria private sector economy. An attempt will be made through this research work to bring out the differences between the industries using outsourcing system and in-house system of recruitment using two different banking industries Bank PHB (using outsourcing system of recruitment) and First City Monument Bank (using in-house system of recruitment), distinction will be made between the two system, to bring out the evil in outsourcing. Finally, this research work recommended that policy should be promulgated through the government to check the excesses of outsourcing system of recruitment since its problems and challenges are far beyond its prospects. …
Can the material for “The Effects of Credit Management on Profitability of Nigerian Banks” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — One of the major problems confronting the Nigerian banking industry today is the increasing incidence of loan defaults and consequent loan losses which manifested on the profitability of the banks, with huge uncollectible loans and advances. This study therefore, examines the effects of loans and advances on the profitability of Nigerian banks. The methodology used in the research includes secondary sources and primary sources of data collection. The data collected were analyzed using Correlation Coefficient, Pearson Product Moment Correlation and other statistical tools to establish trends and relationship between the variables. Furthermore, graphs were used in the interpretation of the data collected. The study found out that at 5 percent level of significant; the calculated value of z is grater than the …
Can the material for “The Effect of Mosquito on Man” be used as a guide for Biology Project?
Yes it can be used — The significance and effects of mosquito on man can never be overemphasized. No human being or other primates can live without good health, as the “adage” says that health is wealth. The aim of this study is to find out or reveal the effect of mosquito on man. It is also to create awareness to the society on the danger of mosquito, especially Ovia North East local government area of Edo State. Four chosen villages were used for this study. In each of the village’s four hundred villages of males and females ranges from 20-40 years, and 40 and above were served with questionnaires, which is the basic tool for the study. The finding revealed that most of the localities were …
Can this topic “The Utilization of Management Accounting Information in Manufacturing Industry Decision Making” be used for Accounting and Finance Project?
Yes it can be utilized for research — Efforts have been made by organizations to rectify the problems found in this firms pertaining to decision-making. Some decisions have altered the requirements of the firms objectives and goals. This work is sought to appraise the use of management accounting to information in decision making of mainly the manufacturing industries. A hypothesis showing that management null hypothesis showing that management accounting information is not effective and efficient in business decision making while the alternative hypothesis said management accounting information is relevant for effective and efficient decision making. Some research findings were made showing how needful management accounting information is. In order to analyze and present the data instrument like personal interview and questionnaire were highlighted. The research dispatched forty questionnaires of …