Impact of Socio-Economic Factors on Financial Literacy of Rural Muslims

The development of a country depends on the combination of its social, financial, and economic development (Ajim Uddin, 2017). Financial literacy is strongly related to socio-demographic characteristics and family financial sophistication (Lusardi, et.al. 2010). Financial literacy of any individual plays a very important role in financial decision. A better financial decision will lead to financial stability of an individual. Among all the religious groups, Muslims are in the least educated section of Indian Society(Post Sachar report,2014).The contribution of level of education plays a very important role in the financial knowledge of an individual. Education is the basic mechanism that develops the social, economic, and cultural enhancement of any communities. The purpose of this study is to know the impact and relationship of socio-economic factors of rural Muslim community on financial literacy. Is there any positive contribution of socio-economic factors of rural Muslim community on financial literacy? The study is confined only to the specific area of socio-economic factors and financial literacy. The major tool used for the data collection is questionnaire and the authors personal experience. In order to analyse the data and draw a conclusion in this study descriptive statistics, correlation and multiple regression are used. The paper concludes the most of the socio-economic factors positively influence the financial literacy of rural Muslims