A Study on SANASA Banking Service and Economic Activities of Rural People (With Reference To Neluwa Divisional Secretariat)

Abstract

SANASA bank has a main place among other banks which is being helped to rural people. The main purpose of this bank is to provide loans and investments for economic activities. There are many SANASA associations in rural level and this bank is being helped to get facilities to people who are getting lower income. This research is focused ―to identify whether there is a contribution to economic activities of rural people by supplied service of SANASA Bank‖. For this study, primary data and secondary data have been used. Primary data have been used collected from sample of 52 families (20% out of 260 families) from Batuwangala Grama Niladharee division by using questionnaires and interviews. The collected information have been analyzed under the descriptive method. According to the study, small scale and medium scale loans are supplied for cultivations of lower level income families. 55% of families have invested the credit loans provided by this banks on economic activities such as self employment, tea plantation and purchase tea plants. 45% of families have invested those loans on non economic activities. According to statements 75% of families given by there are less obstacles in SANASA bank rather than a loan from other banks in obtaining a loan. The reason is that the SANASA bank which is located in a particular Grama Niladharee Division is providing loans only for those people who are living in that particular Grama Niladharee division. Because, mostly SANASA associations are established in rural wise and any person can become member of it and then they can anytime apply for a loan.