A Case Study on Micro Financial Institutions – Effective Tool for Alleviating Rural Poverty in India

A Case Study on Micro Financial Institutions – Effective Tool for Alleviating Rural Poverty in India

Dr. Suman Kannoujiya

Assistant Professor

Deen Dayal University, Gorakhpur

Uttar Pradesh.

Dr. Kamal Singh

Associate Professor

I.T.S Mohan Nagar, Ghaziabad

Uttar Pradesh.

Sanchi Singh

Research Scholar

Deen Dayal University, Gorakhpur

Uttar Pradesh.

Abstract:

Micro financial (MFI’s) are extremely important in helping the underprivileged and low-income people in a nation like India, where 70% of people reside in rural areas and 60% of people are employed in agriculture according to the data of World Bank. The case study aims to highlights significance of microfinance in developing nations like India, where a sizable portion of the populace lives in poverty and lacks access to regular banking services. The Self Help Groups (SHGs)-Bank Linkage Program and Microfinance Institutions (MFIs) are the two main techniques that define the microfinance sector in India. The Self Help Groups (SHGs)-Bank linkage initiative, which aims to give the unreached poor a cost-effective way to receive financial services, is the main player in microfinance in India. The purpose of this case study is to assess the current state and contribution of microfinance to India's growth by elevating the economic conditions of rural population.

Keywords:  MFI’s, SHGs (Self Help Groups), Poverty Alleviation.