Microfinance in India has emerged as the most suitable and practical alternative to conventional banking in reaching the hitherto unreached poor population. Microfinance has caught the attention as an effective tool for poverty reduction and socio- economic development. Hence Microfinance can play a vital role for improving the standard of living of poor. In India, the beginning of microfinance movement could be traced to Self Help Group (SHG) – Bank Linkage Programme (SBLP) started as a pilot project in 1992 by NABARD.
In India, Microfinance scene is dominated by Self Help Group (SHGs) as an effective mechanism for providing financial services to the “Unreached Poor”, and also in strengthening their collective self help capacities leading to their empowerment. Rapid progress in SHG formation has now turned into an empowerment movement among women across the country. Micro finance is necessary to overcome exploitation, create confidence for economic self reliance of the rural poor, particularly among rural women. Although no ‘magic bullet’, they are potentially a very significant contribution to gender equality and women’s empowerment.
This book explains the concepts associated with Microfinance from origin to reach the Global Dimensions. It also highlights the role of Microfinance in Poverty Alleviation, Credit lending models of Microfinance, Women Empowerment through Microfinance, Microfinance and Self Help Groups, the role of NGOs contribution towards the economic development and also explains the trends and Growth in Indian MFIs Sector in India.