Abstract
This study investigates the factors affecting the usage of microfinance services in rural Coimbatore, aiming to understand the key determinants that influence accessibility and effectiveness. By examining various demographic profiles and analyzing the factors impacting microfinance, the research sheds light on the broader context of microfinance in the Indian economic landscape. The study identifies three primary determinants: Financial and Institutional Factors, Social and Demographic Influences, and External and Technological Conditions. It highlights how financial aspects such as interest rates and loan terms, social variables like community support and cultural factors, and external elements such as awareness and technology play crucial roles in shaping microfinance usage. The findings underscore the need for targeted improvements in financial products, community engagement, and technological advancements to enhance the impact and accessibility of microfinance services. This research provides valuable insights for policymakers, financial institutions, and stakeholders seeking to optimize microfinance strategies and foster economic development.
Keywords: Microfinance, Financial and Institutional Factors, Social and Demographic Influences, External and Technological Conditions.
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