Microfinance

Microfinance is defined as the provision of thrift, credit and other non-financial services and product in very small amount to the poor to enhance them raise their income level and improve their standard of living (Eluhaive, 2005). It is the provision of very small loans that are repaid with short period of time and is essentially used by poor individual and household who have few assets that can be used as collateral. A Microfinance bank therefore, may be construed as a company licensed to carry on the business of providing microfinance services such as saving, loans, insurance, money transfer service and other financial service that are needed by the economically poor, micro-, small- and medium enterprises (CBN, 2009).

Socio- economic may refer broadly to the “use of economics in the study of society and in these research study would focus on the social impact of some sort of economic change. These may affect patterns of consumption, the distribution of incomes and wealth, the way in which people behave (both in terms of purchase decisions and the way in which they choose to spend their time), and the overall quality of life (Mike 2008, Encarta, 2009). The goal of socioeconomic study is generally to bring about socioeconomic growth and development, usually in terms of improvements as life expectancy, literacy, level of education and standard of living etc. Although harder to measure, changes in less-tangible factors are also considered, such as personal dignity, freedom of association, personal safety and freedom from fear of physical harm, and the extent of participation in civil society.