Are micro finance companies really beneficial to the needy people? analysis of selected cases

Abstract

The main purpose of this research article is to identify whether micro finance companies are really beneficial to the needy people in Anuradhapura, Galnewa village area. This research exposes the real and true situation of Micro Finance (MIF) loan practices in Sri Lanka to encourage the government for implement stable program and an essential measures to resolve the microfinance crisis that has led to human tragedy, and to do justice to MIF institutions and victims. The study employed the case study approach along with focused on the post- positivistic position that is epistemic. Experimental materials were collected from MIF companies and rural people in Anuradhapura, Galnewa village who faced that MIF crisis through in-depth interviews, non-participatory observations and documentary reviews. The target group included eight persons. The research conclusion was that there are not any benefits from the Micro finance Company in Sri Lanka to improving the living standards of the rural people and Micro finance Companies had established to earn profit they didn’t ensure social responsibility. Further, it was concluded that rural people could not uplift their living standards without developing MIF sector in Sri Lanka. Therefore, development of the MIF sector in Sri Lanka required regulating institute to regulate MIF institute and limit the frequency of MIF loan which given by the MIF institutes.