Awareness and Usage of PSL among Weaker Sections: An Empirical Study

Abstract

Financial Empowerment is vital for economic growth and social development, especially for the economically and socially disadvantaged communities in India. Priority Sector Lending (PSL) initiatives aim to address the credit needs of Weaker Sections of the society. Aim of the Paper is to assess the level of awareness, usage of PSL and analyse the impact of education qualification on the barriers associated with PSL. Using the Cochran formula of unknown population at 10% margin of error 100 respondents were considered for the study from Bangalore urban and rural district. A well-structured questionnaire was prepared by expert validation. The data was analysed using the Chi Square test, ANOVA and SEM model. The results of the study showed that the weaker section of the society is not aware of the provisions of priority sector lending by the Government of India and also led to various barriers in accessing to such loan. The education qualification of the weaker section plays a significant role in the awareness and perception of barriers of Priority sector lending. The study emphasised on the need to enhance education and awareness on the various PSL offered by the government of India.