A Report

On

Mapping of Economy Activity and Financial Need of Small

Business of Ranchi Urban

Submitted to
Xavier Institute-XIDAS, Jabalpur,
Madhya Pradesh

As Partial Fulfilment of the Requirement for the Degree of

Post Graduate Diploma in Management

August 2010

Under the Guidance of

Dr. Jogendra Pathak

Submitted by
Prabhat Lawrence Kandulna

Xavier Institute of Development Action and Studies (XIDAS)

Mandla Road Tilhari, Jabalpur (M.P)
 CONTENTS

Item Particulars Page No

Declaration by the Student i
Acknowledgement ii
List of Tables iii
List of Chart iii
Executive Summary iv-v
Chapter I Introduction
1.1 Background of the study 1
1.2 Rational of the study 2
1.3 Objective of study 2
1.4 Constraints of the study 3
1.5 Section details 3
Chapter II Methodology
2.1 Introduction 4
2.2 Research Design 4
2.3 Sampling Design 4
2.4 Method of Data Analysis 4
Chapter III Organizational Profile
3.1 History 5
3.2 Mission& strategy 5
3.3 Vision 5
3.4 Strategy 6
3.5 Corporate structure 7
3.6 Physical/ Geographical boundaries 7
3.7 Political boundary 8
3.8 Demographic profile 8
3.9 Activities 9-10
Chapter IV Analysis and Discussion 11-20
Chapter V Summary & Conclusion 21-22
Reference 23
Annexure 24-31
 Declaration by the Student

I hereby declare that this project report title “Mapping of Economy Activity and Financial
Need of Small Business of Ranchi Urban” has been submitted by me for the award of the
degree of Post Graduate Diploma in Management, as partial fulfilment of the requirements
for the Post Graduate Diploma in Management (2008-10).

This is the result of original work carried out by me. This report has not been submitted
anywhere else for award of any other degree/diploma.

Prabhat Lawrence Kandulna

Date:
 Acknowledgement

Before I get into thick of things, I would like to add few heartfelt words for the people who
were part of this project in numerous ways. People who have given their unending support
right from the stage of selection of the topic of the project are saluted.

I am particularly thankful to our Director Dr. Sebasti L. Raj Sj, and Dean Dr. Namrata
Vasudev who gave me an opportunity to go to the organisation for my research and
experience.

I would also like to express my sincere thanks and gratitude to Mr. P. Sheshageri , Area
Vice President (AVP), BASIX, Ranchi for kindly permitting me to undertake a short term
project (of 45 days) as Summer Trainees at Bhartiya Samruddhi Investments and Consulting
Services Ltd, BASIX Ranchi and also I am sincerely thankful to my Organisation Guide, Md.
Hanif Jagedar, Field Manager (FM), Bhartiya Samruddhi Investments and Consulting
Services Ltd, BASIX Ranchi for sparing his valuable time and also for providing his kind
supervision, able guidance and suggestions in successful completion of my project. I am
thankful to him for providing all necessary information, books, literatures and explanations in
understanding the Executive Performance Management System.

And finally, I would like to thank all officers and staff of BSFL, BASIX Ranchi who have
very kindly extended whole-hearted support and guidance in carrying-out the above work.

I wish to express my deep gratitude to the energetic Project Guide Dr. Jogendra Pathak,
whose continuous support and guidance has made this report to be scientific and systematic.
His valuable suggestions have helped me highly remarkable.

Once again I take this opportunity to thank all the people who have helped me either directly
or indirectly in completion of this research work.

PRABAHT LAWRENCE KANDULNA

 List of Tables
Sr.No Particulars Page No.
1 Table 1.1 Occupation of Respondents 25

List of Charts
Fig. no Particulars Page No

4.1 Age of Respondent 12

4.2 Qualification of Respondent 13
4.3 Gender of the Respondents 13
4.4 Year in Ranchi 14
4.5 Doing business from Ranchi 14
4.6 Ranchi or other 15
4.7 Reason of Migrations 15
4.8 Required Capital 16
4.9 Procurement of capital for Running the business 16
4.10 Sources of Awareness of MFI 17
4.11 MFI working in Ranchi 17
4.12 Financial Institution Interest Rate 18
4.13 Payment of Interest &Principal 19
4.14 Difficulty to procurement Capital 19

4.15 Keeping mortgage in Financial institution 20

4.16 Satisfaction level of the respondent 21

4.17 Loan taken from MFI 21

Executive summary
This project was selected to be carried out at Bhartiya Sumruddhi Finance Ltd. (BASIX),It is
a very successful organization in India. In this research project deals with “Mapping of
Economy Activity and financial Need of Small Business Ranchi Urban”. This report deals
about the detailed study of the company’s profile has been made before taking-up this work.
Subsequently the company’s HR policies were studied and detailed account of its different
defervesce activity.

A company is starting a new operation in Ranchi Urban. Earlier Company was focusing on
rural people for developing there activity which these rural people were involved and now
company slowly moving to urban area. It has already started in many other states and had a
good feedback from urban customer, so company is willing to start in Ranchi Jharkhand. As
Crisil survey Basix holds the eight procession across the India in Micro Finance it had a good
market value in all over the India. A very large number of people were taking benefit
through credit and other services which company is providing, (Agriculture development, and
Business development). In this study, Studied about the activity which people were doing for
there sustainable Development for there livelihood promotion and also studied about
businessman/women who want credit for develop there Business. In this research researcher
studied which are the Micro finance company is working in Ranchi urban area, who are the
customer and what age group people are involved in business what business they do and from
how many years they are doing such business in Ranchi, working capital is required for
smoothly run the business and how and from were they procured capital, are they satisfied or
not if no then what they are looking for and how Basix help them.

In the findings we found that maximum were the age group 31-35 were doing business and
maximum were in the business of Kirana shop and other is Small Hotel business is not that
only man were doing business but also the women were also in business and from business
that they earn is sufficient for there family and they all save some amount for the business
also. Still there were many customers who were not aware about micro finance and some
were not taken credit from Micro finance. The researcher framed schedules of 21 questions
based on the above studies which comprises of all probable points like, Occupation,
procurement capital, difficulty, awareness of company and Interest rate, satisfy or not ,
payment of Instalment, earring from business. It was designed in such a way that all possible
information related with the relevance information of expected customer for basix in future,
its applicability and adaptability amongst the executives. The sample which the researcher
has taken in about 100 respondents from different cluster out off 100 respondents 76 have
given agreed for giving the information about there business it happen because of they scared
income tax.
 CHAPTER 1
Introduction
1.1 Background of Study
In the present day world globalization is increasing at a very high pace and it is resulting in
profit oriented economies which in turn leads to the promotion of livelihood promotion
services in rural area and now we expand our area to rural to urban to connect more people
with us and provide them sustainable livelihood. What started in the early nineties as an
initiative by a few NGOs to encourage women into saving small amounts, microfinance in
India has had a long journey, with over 1,000 institutes now hoping to meet the needs of 130
million poor people. In an interview, Vijay Mahajan, chairman, Basix group, shares the
challenges the sector faces and his vision for the sector. Excerpts: How far do you think has
the microfinance sector in India been able to capture the needs of small loan borrowers,
mainly hailing from low income households? We are now the world’s largest micro-financed
country in terms of outreach. The two lending models — the bank-SHG linkage and the
group lending adopted by MFIs — now reaches around 95 million people with certain
overlap. While the figures look impressive, there are still 450 million workers of which only
15-20% has been tapped. The next issue is to see how the industry can meet all the credit
needs of an individual and secondly credit is not the only financial need —savings, insurance
and remittances also need to be offered ahead. We should see to it that every individual has a
bank account and sub-K (below Rs1000) transactions are hassle-free.
The sector has quite a distance to go. In terms of time, it depends on how quickly we put in
place the technology and make the best use of it. I would say we are there when the number
of bank accounts crosses the number of mobile telephones in India — with both offering
small transactions. However, if one has to be absolutely realistic, in 2020 India will have
mere financial inclusion with some hardship cases. Down the line, it is important for the
sector to emerge as an anytime-anywhere one with complete authentication. The UID project
will aid for rampant access and on the other hand with the Reserve Bank of India encouraging
M money, mobile telephony will aid in authentication and of course, there is RBI that drives
the accountability factor.
The lending rates to customers are exorbitant. When can one see a marginal drop in the 25%
and up lending rates that the MFIs levy?

Yes, in fact, it is one of the criticisms that the interest rates are too high at around 23-25%-
plus. The interest rates would partly go down if the ticket size goes up. On the other hand, the
transaction costs should also go down. Of the around 25% interest rates we levy, 12% is the
operations cost, which is largely accounted for the staff and their travel. It is then necessary to
come up with alternative methodologies like distributions through mobile services, other
technologies and to some extent, achieve operating efficiencies. The innovation should be
however levied with utmost care as bad debt would go up otherwise. It may take another
three years to achieve desired levels of operating efficiencies.

1.2 Rationale of the Study

Bhartiya Sumruddhi Investment and Consulting Services Ltd. is one of the
private companies with large number of employees and also a large
number of existing customers all over India. Earlier company was looking
after the rural India now company is also focusing on the urban operation
areas. It has already started in some of major city like Hyderabad,
Mumbai, etc. BASIX is an India based microfinance organization with
primarily rural poor households (90%) and urban slum dwellers (10%).
BASIX works in 15 Indian states including: Andhra Pradesh, Karnataka,
Orissa, Jharkhand, Maharashtra, Madhya Pradesh, Tamilnadu, Rajasthan,
Bihar, Chattisgarh, West Bengal, Delhi, Uttarakhand, Sikkim and Assam
and over 10,000 villages. It has a staff of over 3500, of which 80 percent
are based in small towns and villages. BASIX provides financial services
and technical assistance to help the poor and women develop what BASIX
terms sustainable livelihoods. As a result of its financing, BASIX strives to
yield a competitive rate of return to its investors so as to be able to
access mainstream capital and human resources on a continuous basis.
1.3 Objective of Study
The objective of the study were:

• To assess who are the customer,

 • To assess what are the factors that influence customers,

• To assess the consumer satisfaction through Micro finance,

• To assess company competitor in Ranchi Urban,

1.4 Constraints of the Study

• Asking about the income from their business they don’t tells the right.
• Asking from women is more difficult about any thing they are not ready give any
information.
1.5 Section Details

Chapter one gives an introduction to the topic of present study “Mapping of Economic
Activity and Financial need of Ranchi Urban area. The study was conducted through visiting
area and asking questions with trade and SHGs to understand their perception towards
Micro Finance Company. Chapter Two involves standard methodologies used for collecting
data. Primary methodologies include observation; interview, schedule questioner and the
secondary methodologies include books, internet and other resources. Chapter Three deals
with the organisational Profile, History, Vision & Mission, Goal and activities which
conducts action Research, Ranchi, and Jharkhand, which include Physical boundary/
Geographical boundary, Political boundary, and Basic Demographical profile of the people
residing in the area. Chapter Four deals with the analysis and discussion. Primary data is
analysed through Tables, Graphs, and Texts and at last the summary and conclusion of the
report is in chapter six have been placed.
 CHAPTER II
Methodology
2.1 Introduction
Research Methodology is a way to systematically show the research problem. It may be
understood as a science of how research is done scientifically.

2.2 Research Design

A Research Design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the design is the conceptual structure within which
research is conducted.

Research Tools and Techniques: Following tools were selected for data collection
• Primary data.
• Secondary data.

A) Primary data
Primary Method is the method, which uses primary data in other words when data are
collected afresh and for the First Time and thus happens to be original in character. There are
various methods by which data can be collected. The methods that were used are:
1. Observation method
2. Interview method

B) Secondary data
In this respect required data for study is also collected through following secondary data
collection:
 Company’s web site,
 Company’s manual, policy

2.3 Sampling Design

Sampling method is used to collect the primary data from respondents. The target population
is Small Businessman/women Entrepreneur who were straggling for capital to run their
Business smoothly. Purposive Random sampling Method was used as Sample.

2.4 Method of Data Analysis

The data collection were entered & processed with the help of SPSS. The result has been
analysed in chart form.
 CHAPTER III
Organisation Profile

3.1. History

The Holding Company of the BASIX Group is called Bhartiya Samruddhi Investments and
Consulting Services (BASICS Ltd.) which started operations in 1996 as India’s first “new
generation livelihood promotion institution”. It set up two fund based companies – Bhartiya
Samruddhi Finance Ltd, a micro-finance NBFC in 1997 and Krishna Bhima Samruddhi Local
Area Bank Ltd in 2001. Both were among the first in class.

3.2 Mission and Strategy

Mission is to promote a large number of sustainable livelihoods, including for the rural poor
and women, through the provision of financial services and technical assistance in an
integrated manner.
BASIX will strive to yield a competitive rate of return to its investors so as to be able to
access mainstream capital and human resources on a continuous basis.
Equity for Equity

3.3 Vision
The meaning of our Logo
The BASIX Logo is a visual representation of our ideals and our ideas. Inspired by the
Chinese Yin-Yang, it symbolizes BASIX Commitment to better the livelihoods of the poor
by harnessing the power of the prosperous.
The circle represents our Mother Earth, half in darkness (Blue), half in light (White).
The circumference symbolizes our environment, omnipresent and all embracing, a reminder
that the creation of prosperity (Samruddhi) must be sustainable for all within the circle.
The Blue represents the poor who do not have the opportunities of the prosperous.
The white circle within the Blue symbolizes the inherent hope that arises from the talents and
aspirations of the poor that BASIX recognizes and seeks to act upon.
The White represents the prosperous but pallid half of Mother Earth, the half that we believe
can benefit from the vigor of the Blue.
The lines, visible in the White, represent our efforts to join Blue and White in a harmonious
and holistic mode. We strive to achieve this cohesion by the fluid and sustained movement of
capital, technology, institutions, markets, policies, and human resources.
When envisioned together, the six elements of the BASIX Logo reflect our motto, "Equity for
Equity," our attempt at using capital (financial, physical, human, social, natural and
intellectual) to work towards bringing equality of opportunity and social justice to all our
fellow beings.

3.4 Strategy

Livelihood Triad
Institutional Development Services (IDS)

Financial Inclusion Services Agricultural/Business Development

Services
(FINS) (Ag/BDS)

The rationale behind the livelihood triad strategy is as follows:

Micro-credit by itself is helpful for the more enterprising poor people in economically
dynamic areas. Less enterprising poor households need to start with savings and insurance,
before they can benefit from micro-credit, because they need to cope with risk. However, in
backward regions, poor people, in addition to microfinance, need a whole range of
Agricultural/Business Development Services. To offer these services in a cost-effective
manner, it is not possible to work with poor households individually and they need to be
organized into groups, informal associations and sometimes cooperatives or producer
companies. The formation of such groups and making them function effectively, requires
Institutional Development Services. Hence, BASIX adopted the Livelihood Triad strategy.
3.5 Corporate structure

The corporate structure of the BASIX Group is as follows:

3.6 Physical boundaries/Geographical boundaries

Ranchi, the capital city of Jharkhand was framed in 1899.
This is spread over 7,574 sq. km. created form Lohardaga District. Spanning from 23°23'
North latitude to 85°23' East longitude, Ranchi is located an altitude of 2,140 m above sea
level. The 2001 Census has marked a population of 27, 85,064. The verdant topography and
fertile soil facilitates extensive agriculture manifested by the cultivation of rice, millets,
pulses and oilseeds. It has a moderate climate where the summer temperature ranges from 20°
to 37° and from 2.8° to 23° during winters. This is a City of Falls and Forest.
3.7 Political Boundary
The Government and administration in Jharkhand is controlled on the same lines as in other
states of the country. The state follows a unicameral system of government i.e. it has only one
house- the Jharkhand Legislative Assembly (Vidhan Sabha) consists of 81 members.
Jharkhand has 14 seats in the Lok Sabha- the lower house of Parliament. The state is headed
by a Governor, who is appointed by the President of India. However, the real executive
power rests with the Chief Minister and the cabinet. The political party or the coalition of
political parties having majority in the Legislative Assembly forms the Government.
The administrative head of the State is called Chief Secretary, under whose jurisdiction a
hierarchy of officials drawn from the India Administrative Service/ State Civil Services
Function. The judiciary is headed by a Chief Justice and Jharkhand has a separate High
Court, Located in Ranchi. Jharkhand is one of the thirteen states in which the Naxalite rebels
have considerable influence.

3.8 Demographic Profile

As per the India census of 2001, Ranchi had a population of 846,454. Males constitute 53%
of the population and females 47%. Ranchi has an average literacy rate of 74%, higher than
the national average of 59.5%. Male literacy is 80%. And female literacy is 68%. In Ranchi,
13% of the population is under 6 years of age. According to the current estimates, the
population of the city is now about 1,300,000. Jharkhand has a population of 26.90 million,
consisting of 13.86 million males and 13.04 million females. The sex ratio is 941 females to
1000 males. The population consists of 28% tribal’s, 12% Scheduled Castes and 60% others.
There are 274 persons for each square kilometer of land. However, the population density
varies considerably from as low as 148 per square kilometer in Gumla district to as high as
1167 per square kilometer in Dhanbad district. Hinduism, Islam and Christianity are the three
religions that came in through the colonisers. Jharkhand has 32 primitive tribal groups. These
are Asur, Baiga, Banjara, Bathudi, Bedia, Binjhia, Birhor, Birjia, Chero, Chick-Baraik, Gond,
Gorait, Ho, Karmali, Kharwar, Khond, Kisan, Kora, Korwa, Lohra, Mahli, Mal-Paharia,
Munda, Oraon, Parhaiya, Santal, Sauria-Paharia, Savar, Bhumij, Kol and Kanwar.The
geographical area now comprising Jharkhand was previously part of Bihar.
3.9 Activities:

The BASIX Livelihood Triad includes the following services.

Financial Inclusion Agricultural/Business Institutional development

Services (FINS) development Services Services (IDS)
(Ag/BDS)

Savings (only in three Productivity enhancement Individual level awareness, skill

districts where we have a and entrepreneurship
banking license), elsewhere development, building solidarity
through banks and trust

Credit: agricultural, allied Risk mitigation (other than Formation of groups, federations,
and non-farm, short and insurance) cooperatives, , etc. of producers
long-term

Insurance, for lives and Local value addition Accounting and management

livelihoods –Life, health, information systems, using IT

Weather index based,
livestock, micro-enterprises
etc.

Money transfer, for migrant Alternate Market linkages Building collaborations to

workers Input supply, output sales deliver a wide range of services

Commodity derivatives

Financial orchestration Diversification from farm to Sector and Policy work –

(arranging funding from allied and non-farm activity Analysis and advocacy for
various sources) change / reforms.

The rationale behind the Livelihood Triad strategy is as follows: Micro-credit by itself is
helpful for the more enterprising poor people in economically dynamic areas. Less
enterprising poor households need to start with savings and insurance before they can benefit
from micro-credit, because they need to cope with risk. However, in backward regions, poor
people, in addition to microfinance, need a whole range of Agricultural/ Business
Development Services (productivity enhancement, risk mitigation, local value addition, and
market linkages) need to be provided. To offer these services in a cost-effective manner, it is
not possible to work with poor households individually and they need to be organized into
groups, informal associations and sometimes cooperatives or producer companies. The
formation of such groups and making them function effectively, requires institutional
development services. Hence, BASIX adopted the Livelihood Triad strategy. Urban is
defined as minimum of 1 Lakhs households which include state capitals, metros and major
District Head Quarters. In the existing operational areas, where the population does not fell in
to definition of Urban continue to follow the Rural Mode.
 CHAPTER IV
Analysis and Discussion

4.1 Introduction:
In this chapter data are analysed by the researcher through the gathered information from the
data collection through the primary sources. The total analysis has been done on the basis of
data collection from the Respondents. The researcher study conducted through the Schedule
and observation, respondent only that were having some Business.

4.2 Age of the Respondents

In Figure 4.1 describes the age of Respondent, In the Ranchi Urban the respondents were of
about the different Age group. The respondent of age group 26-30 and 31-35 years are in
maxim were that were Involved in the business.

Fig4.1 Age of respodent

45
40
20-25
% of respondent

35
30 26-30
25 31-35
20 36-40
15
41-45
10
46-50
5
0
Percent
Age Group

4.3 Qualification of the Respondents

In the fig. 4.2, it presents the all the Respondent who were in the Business there Qualification
in this fig. Researcher had fined that maximum were from intermediate and Bachelor in Arts
Respondent were in business area also researcher find that some of are from the generation

Business.

Fig.4.2 Qualification of Respondant

60

50
% of Respondant

Non-Matric
40
Matric
30 Inter
BA
20
B.Com
10

0
Percent
Qualification of Respondant

4.4 Gender of the Respondents

In the fig.4.3, Respondents of urban Areas were engaged in small Business both Male and
female. It describe about the Gender who were involve in Business in which 64% male and
36% Female are there. The Researcher find that both the male and female having the same
business.

Fig.4.3 Gender involve in Business

36%

Male
Female

64%
4.5 Origin Place of Respondent
In this fig.4.4, the researcher had find that the respondent who were living in Ranchi from
many years and having there business Fig.4.4 tells about the 5-10 and 46-50 years were less
percentage respondent. A good number of respondent were living from many years.
Respondent were doing Business fig4.5 Researcher find that Respondent who were doing
Business from 11-15 years are maxima number of Respondent in Ranchi, and in the fig.4.6 it
shows that 72% of respondent were from Ranchi only and 28% were from other place like
Bihar, Hazaribagh, Daltanjgang, Gumla, and other place migrate from there place.

Fig.4.4 Years in Ranchi

20 ,5-10
% of Respondent

,11-15
15
16 - 20
10 21 - 25
26 -30
5
31 -35
0 36 - 40
Percent 41-45
Years 46 -50

Fig.4.5DoingBusinessfromyears
% of Respondent

60
48.7
50
5-10years
40 34.2 11-15years
30 16-20Years
21-25years
20
36-40years
7.9 7.9
10
1.3
0
Percent
Years
 Fig.4.6 From Ranchi or other

28%

Yes
No

72%

4.6 Reason of Migration

In the study about the Respondent migration to the Ranchi with different purpose and having
there business this because of earn money because in were they came very less activity to
livelihood. The researcher described that this respondent who were from different place came

for this all reason and stayed in Ranchi for livelihood.

Fig4.7ReasonofMigrations
Marrige Business Job Ranchi Only

9%

11%

8%

72%
4.7 Required Capital for running the Business

In this Fig4.8.Researcher find out the Required Capital for the Run the Business and which
are the Business which required more Capital, find that more of the Respondent Business
required 20000/ Capital to run there Business and also some of respondent have invested

1lakh Capital in there Business, and in the fig.4.9 Researcher find that more of Respondent
were having there own capital. Knowing or not knowing about the MFI may be in future they
can take loan from MFI.

30
Fig.4.8RequiredCapital 15000/
25 20000/
20 25000/
15 30000/

10 35000/
d
p
n
e
s
t%
fR
o

50000/
5
55000/
0
Capital 65000/
 Fig.4.9 Procurementof capital for Running the business
60

50

40
Own
Bank
30
MFI
d
n
p
s %
o
fre

20
t

10

0
Procured capital

4.8 Awareness of MFI

In this it described about the awareness about the MFI in urban area of Ranchi, as data
collected through the research and find that 76 respondent 17% were not aware of MFI other
were know through the agents, friends, people and others. In the fig 4.11 researcher find out
which are the company’s were working in this area or who are the competitors of Basix but
still there is a market for work as the chart show that from76 respondent 20 were not knowing
about MFI.

Fig.4.10 Sources of Aweareness of MFI

45
40
35
% of Respondent

30 Agents
25 People
20 Friends

15 No

10
5
0

Awareness
 Fig.4.11 MFI working in Ranchi
35

30 SKS,ASMITHA
SKS,UJJIVAN
25
ASMITHA,UJJIVAN
20 SKS
15 UJJIVAN
BANDHAN
10
fm
%

No Idea
d
u
p
tc
e
rk
ao

0
Organization

4.9 Interest Rate of Financial Institution

Fig.4.12 it described about the interest rate of Bank, Micro Finance, other were the bank has
low interest rate but for procuring is difficult.

F ig .4.12 F in an cial Institu tio n In terest R ate

60

50
10%
40
15%
30 12%
N o Id e a
20
d
n
esp
t %
fR
o

10

0
In terest R ate

4.10 Paying the interest and principle to Financial Institution

Also in the fig 4.13 it described about the how they pay the interest and principal amount to
Financial Institution and through the data researcher find that respondent pays monthly,
weekly and still there are respondent who were not taken Loan from Financial Institution so
still there is place to get the market in future

Fig.4.13 Pay ment of Interest & Principle

60

50

40 Weekly
Monthly
30
No Loan
20
d
n
p
s
e
t%
fR
o

10

0
Mode of payment

4.11 Difficulty to having Loan from Financial Institution

In the fig.4.14 researcher had found that respondent were having difficulty in procuring
capital from bank and other Institution there are many reason of having difficulty red
trapezium and other etc.
 Fig.4.14 Difficulty of Procurment capital

Yes No

12%

88%

4.12 Keeping Mortgage in Financial Institution

In this fig 4.15 it described about the financial Institution who taking mortgage from
customer as a security of Loan, that why the people were prefer to take from Micro Finance
Institution.

Fig.4.15 Keeping Mortgage in Finacial Institution

Yes No

17%

83%
4.13 The Satisfaction level of the Respondent

In the of Fig.4.16 it described the satisfaction of respondent through financial Institution and
researcher find that because of interest rate high and they have to pay as weekly Instalment to
MFI this is reason that respondent were not taken Loan from MFI. But as researcher I find
that they have a only less knowledge about Micro Finance otherwise they does tell about that
interest rate is high. It shows the satisfaction of respondent, and in the fig 4.17 researcher
trying to high light the who ever were satisfaction through MFI they taken Loan and who
ever were not satisfied they not taken the Loan, researcher find that 60% respondent were not
taken Loan and 55% were not satisfied.

Fig.4.16 Satisfactionlevel of the

Respondent

33% Yes
Not

67%
 Fig.4.17Loan takenFromMFI
70

60
SKS
50
ASMITHA
40 UJJIVEN
30 BANDHAN
d
p
n
s
t %
o
fre

No
20

10

0 Companies
 CHAPTER – V

Summary and Conclusion

5.1 Introduction

There is evidence from a number of studies suggesting that microfinance is good for micro
Businesses. Various studies showed increases in business ownership, investment, and profits.
Importantly, this result holds for microsavings as well as microcredit. Microsavings in
particular appear to be a promising financial instrument whose potential is only beginning to
be discovered. Based on the studies in this survey, the overall effect on the incomes and
poverty rates of microfinance clients is less clear, as are the effects of microfinance on
measures of social well-being such as education, health, and women’s empowerment

Microfinance in India started in the early 1980s with small effort at forming informal self-
help groups (SHG) to provide access to much-needed savings and credit services. From this
small beginning, the microfinance sector has grown significantly in the past decades.
National bodies like the Small Industries Development Bank of India (SIDBI) and the
National Bank for agriculture and rural Development (NABARD) are devoting significant
time and financial resources to Microfinance. This points to the growing importance of the
sector. The strength of the microfinance organizations in India is in the diversity of
approaches and forms that have evolved over time.

5.2 Summary of the Study

In this research the researcher found that still the people not aware of Microfinance so it need
to give more information about Basix Microfinance and services which company is providing
to people, also researcher found that what ever interest is there is given data is flat interest
which is for the year. Basix is providing the interest is about 24% flat but the when 2%
monthly interest in reducing principal. As the same other Microfinance company having15%
but weekly in comes of 1% of there principal amount. In this survey researcher observation is
researcher found still many respondent who not taken loan from Micro Finance Institution
and also they want Loan in the future for develop there Business. There are other area were
researcher does not reached there are lots of customer who were having business as the data
described and in future in capture the market of urban area Basix micro Finance which
provide lots other services through credits and Basix have a future for the urban as researcher
had survey he found that compared to other micro finance company basix is providing good
service and it had a good future as the respondent response while the survey.

5.3 Conclusion of the Study

A way out is expansion of scale of operations which can bring down the average operating
expenses. The major factor holding up scaling of operations is cited to be lack of funds.

Another area of concern is the activities financed by microfinance tend to remain ‘micro with
a loan of Rs10000/- to Rs35000/- and weekly/monthly/quarterly instalment payments, there is
not much scope for expansion of activities. The activities of selling cow milk, goat milk,
chicken, fireweed, agriculture on leased land, only provide the poor with the bare minimum.
(Field Survey)One way it makes a difference is that when the income generated is added on
to the present income of the upper crust of the poor it helps them to transcend the income
line, but does not help to develop an asset base. The only solution is to enhance the volume of
credit in line with the growth of the productive activities. ‘Micro’ finance is needed for a
larger scale of operations. A policy direction may be helpful here. Further, if for some reason
the micro activity does not fetch any return say crop failure due to bad monsoons; the
beneficiaries of Microfinance suffer tremendously. In such instances ‘Micro insurance’ helps
in providing a buffer and it is heartening to note that national and private insurance
companies are talking steps here.
Further, if for some reason the micro activity does not fetch any return say crop failure due to
bad monsoons; the beneficiaries of Microfinance suffer tremendously. In such instances
‘Micro insurance’ helps in providing a buffer and it is heartening to note that national and
private insurance companies are talking steps here.
All said and done, Microfinance remains a powerful tool for development. It may be a
drop in the ocean, but it has made people self sufficient. Our task is to spread Microfinance
and bring down the cost of capital and the operating costs and strengthen the bonding
between Microfinance and the Formal Financial System. However, for sustainable
development of the poor and rural economy, we have to focus on development of rural
infrastructure and the rural economy, otherwise there will be few activities requiring finance.
 Reference

Books:

 Ghate,Prabhu, 2007, Microfinance in India, Prabhu Ghate, and SAGA

Publications,New Delhi, p. 125-130.

 Herper, Malcolm, 2002, Beyond Micro Credit, eighth, and vistaar Publication, New
Delhi, p. 147-149.

Websites

 www.scribd.com retrieved on 8/08/10

 http://www.microfinanceindia.org/ retrieved on19/06/10
 www.jharkhand, Indian State.htm retrieved on 28/06/10
 www.Basixindia retrieved on 05/08/10
 http://www.scribd.com/doc/20998565/Top-50-Microfinance-Institutions-in-India-by-
CRISIL retrieved on 10/08/10
 Annexure: I

Occupation of Respondent in Ranchi

Table 1: Occupation of Respondent

Particulars Percent
Kirana Shop 18.4
Medical shop 5.3
Tailaring 3.9
Cosmatic 2.6
Veg-Trade 2.6
Genral shop 5.3
Referigerator Reparing 1.3
Dairy 2.6
Mobile 7.9
Shoe Shop 2.6
Hard Ware Shop 3.9
Parlour 5.3
Cloth Shop 3.9
Contrator 3.9
T.V Showroom 1.3
Hotal 15.8
Agriclture 2.6
Xerox 3.9
Auto 2.6
Book Shop 1.3
Watch Shop 1.3
Polatery 1.3
Source: Primary survey, 2010
 Annexure 1.2

Schedule

Public perception Survey of Urban Ranchi

June 2010

Name: ................................................................................Age: ........................

Qualification: .................................... Gender: ........................

Area: ................................................

1. How many members in your family?

Ans :..................................................................................................................................

2. Whether you are from Ranchi or any other place?

Ans: ...........................................................................................................................

3. If other place then how you came in Ranchi?

Ans: .............................................................................................................................

4. From how many years you are in Ranchi?

Ans: .............................................................................................................................

5. What is your occupation?

Ans: .............................................................................................................................

6. How long you are doing such Business?

Ans: ...............................................................................................................................
 7. What is the required capital for running the business?

Ans: ..................................................................................................................................

8. Whether it is a only sources of your income?

Ans: .................................................................................................................................

9. Whether your family is soldiery?

Ans: .................................................................................................................................

10. From where you procured capital for the function of the business?

Ans: ............................................................................................................................

11. Do you get any of difficulty in the procurement of capital?

Ans: .................................................................................................................................

12. Do you kept mortgage in procurement of capital?

Ans: ...............................................................................................................................

13. If you get the assistance from the financial institution then what is the interest rate?

Ans: ................................................................................................................................

14. How much you earn from this business?

Ans: ................................................................................................................................

15. How you pay the Interest as well as the Principle amount to Financial Institution?

Ans: ................................................................................................................................

16. Do you aware about Micro Finance Institution. If yes then how?

Ans: ................................................................................................................................
 17. Which are the micro finance organizations working in this area?

Ans: ..................................................................................................................................

18. Did you took the loan from the MFI. If yes then specify the name?

Ans: .................................................................................................................................

19. Are you satisfied with from the service of MFI, if no then why?

Ans: ...............................................................................................................................

20. How much you have taken loan from Financial Institution?

Ans: ...............................................................................................................................

21. Remark and Suggestion

......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
...............................................................................................

Signature
Annexure 1.3 Map of India
Annexure 1.4 Map of Ranchi
 Annexure 1.5 Map of Jharkhand

Annexure 1.6

Annexure 1.6 Taking Data from Family member of Lalpur area.

Annexure 1.7 Having a meeting of Basix in Joratalab area with ladies informal group.