ISBN 9788177083903,Micro Finance, Self-help Groups (SHGs) and Poverty Eradication in India

Micro Finance, Self-help Groups (SHGs) and Poverty Eradication in India


N. Mani


New Century Press



New Century Press

Publication Year 2014

ISBN 9788177083903

ISBN-10 8177083902

Hard Back

Number of Pages 294 Pages
Language (English)


the process, the term has been imputed to mean everything to everybody. It includes agricultural/rural credit, co-operative credit, consumer credit, credit from credit unions, and from money lenders. Micro finance sector has grown rapidly over the past few decades. Nobel Laureate Muhammad Yunus is credited with laying the foundations of modern micro finance institutions (MFIs) with the establishment of Grameen Bank, Bangladesh in 1976. Today, it has evolved into a vibrant industry exhibiting a variety of business models. In India, National Bank for Agriculture and Rural Development (NABARD) took up this idea and started micro finance operations in the early 1990s. India has adopted a multi-agency approach for the development of its micro finance programme. All the major credit institutions, viz. commercial banks, co-operative banks, regional rural banks (RRBs) along with non-governmental organisations (NGOs) have been associated with the micro finance programme. The role of the delivering agents and their interface with the needy has led to alternative models of micro finance. Several factors have led to increased interest in micro credit in promoting growth with greater equity. There is increasing recognition of the importance of empowering all people by increasing their access to all the factors of production, including credit. Several micro finance institutions have succeeded in reaching the poorest of the poor by devising innovative strategies. These include the provision of small loans to poor people--especially in rural areas, at low interest rates, without collateral--that are repayable in frequent instalments. Above all, many micro credit programmes have targeted one of the most vulnerable groups in society, i.e. women who live in households that own little or no assets. By providing opportunities for self-employment, many studies have concluded that these programmes have significantly increased women's security, autonomy, self-confidence and status within the household.