An Analysis upon the Recent Development of Microfinance: A Tool of Poverty Alleviation | Original Article

ABSTRACT:

Microfinance programme has been generally regarded as a development strategy that can enhance the economic performance of the poor. The government of India has made concerted efforts to alleviate poverty in the country. One of such efforts is Poverty alleviation through Microfinance loan but poverty still remains pervasive and widespread in the country especially in the rural communities. Microfinance Institutions are implored to create more awareness on their operations and make less stringent conditions for the loan accessibility. To know how microfinance does increased the income level and standard of the poor from low income level to high income. Microfinance was proved to be a great tool to fight against poverty and to empower the low income households and groups in the study area. Microfinance proved to be a great tool for economic development and for alleviating poverty from the society. It also helped in pushing up low income groups of society, community and merge as unique blend for financial and social intermediation. Microfinance was the key strategy that leads to immediate revitalization of economy enhance their living standards, women empowerment and employment generation. Many developing countries like India, Bangladesh and Pakistan are using microfinance to increase the living standard of their people. But in India main focus of Microfinance Institutes (MFIs) was only to give credit. There is a strong relationship between microfinance and poverty alleviation. The results also showed that Microfinance Scheme help people to improve their living standard and provide them financial opportunity to expand their business. Microfinance is the key strategy that leads to quick recovery of economy, increase in living standard Microfinance playing a vital role improving standard life of rural people, people facing many problems sanctioning loan from formal financial Institution. In the event that one can help, a needy individual to remain all alone that can't just realize a transformation in their lives additionally in the general public. The fantasy of a sound and taught society with no separation and one-sided can be accomplished through this basic thought, the fantasy which is by all accounts working out as expected and getting to be reasonable.