Problems of people from different academic backgrounds belonging to the unorganized sector who borrow from unregistered microfinance units at high interest rates: A Sociological study of Panipat city

Microfinance institutions lead any developing country on the path of development by reaching among the disconnected people from the mainstream of the society, making them available microcredit as a short term loan on low interest rates. This research paper is based on primary data obtained from respondents working as shopkeepers, street vendors, labour class working in unorganized sector, and speculators in Panipat city, who had taken loans from persons working as unregistered microfinance units. Attempts were made to conduct a sociological analysis of their socio-economic lifestyles, considering the educational background of the respondents for research. Data was collected from 60 respondents through snowball sampling for research, who had taken loans from unorganized microfinance lenders under any circumstances, revealing many socio-economic problems faced by these people in their daily lives. The aim of the research was to highlight the functional and negative aspects of these unregistered microfinance units on the society.