GASPRO International Journal of Eminent Scholars

                                                                                               ABSTRACT

This study investigated the impact of microfinance banks on the socio- economic development of rural people in Akwa Ibom State, using both qualitative and quantitative data from 300 respondents. The findings revealed that 60% of respondents were female, with the dominant age group being 31–45 years (43.33%). Educationally, 83.33% had at least a secondary & tertiary education, whereas farming was the most common occupation with 36.67%. A total of 70% had access to microfinance loans, while only 50% accessed savings services. Income analysis revealed that prior to receiving microfinance loans, 60% earned below ?50,000 monthly, which dropped to 43.33% post-loan access, with income increases reported by 60% of the respondents. Employment status also improved: formal employment rose from 40% to 60%, and unemployment dropped to 0%. Socio-economic impacts on education were notable, with 60% affirming improvements due to access to school fees and learning materials. Chi-square tests showed statistically significant relationships between loan access and changes in income (?² = 12.56, p = 0.01), and between microfinance access and employment status (?² = 15.72, p = 0.02), leading to rejection of both null hypotheses. The study recommends that microfinance institutions should expand loan facilities, reduce interest rates, and enhance financial literacy prosgrams to maximize socio-economic benefits for rural dwellers.

KEYWORD: Microfinance, Socio-economic development, Rural people, Income Improvement, Employment empowerment