International Journal of Advances in Social Sciences

Pooja Devi Sinha ¹, Mahesh Shrivastava ²

Affiliations
1 Pt. Ravishankar Shukla University, Raipur C.G., IN
2 Digvijay College, Rajnandgaon, C.G., IN

Abstract

Micro-Finance is emerging as a powerful instrument for poverty alleviation in the new economy. In India, micro- finance is dominated by Self Help Groups (SHGs) - Banks Linkage Programme, aimed at providing a cost effective mechanism for providing financial services to the 'unreached poor'. Based on the philosophy of peer pressure and group savings as collateral substitute, the SHG Programme has been successful in not only designing financial products meeting peculiar needs of the rural poor, but also in strengthening collective self-help capacities of the poor at the local level, leading to their empowerment. The study aims at identifying the origin and concept of micro finance, features and role of micro finance in India, reviewing the progress and weakness followed by suggestions for making micro finance as an effective instrument of poverty alleviation, women empowerment and rural development in India. In India, the institutions which provides microfinance services includes:-NABARD, Small Industries Development Bank of India SIDBI), Rashtriya Mahila Kosh, Commercial Banks, Regional Rural Banks, Cooperative Banks and Non Banking Financial Companies (NBFCs).

Keywords

SHGs, Micro Finance, Regional Rural Banks, Cooperative Banks, Rashtriya Mahila Kosh, NABARD.

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