Microfinance_ - As a Catalyst for the Growth of Rural India

Abstract

Microfinance is emerging as a powerful tool for poverty alleviation in India. Microfinance refers to small savings, credit and insurance services extended to socially and economically disadvantaged segments of society. Microfinance began in India in the 1990s as a way of alleviating poverty, by encouraging income generating activities by poor households. The prospect ofMicrofinance is dominated by SH Gs (Self Help Groups)-Banks linkage Programme. Its aim is to provide a cost effective mechanism for providing financial services to the poor.