A Study of the Performance of Microfinance Institutions in India in Present Era- A Tool for Poverty Alleviation
Jyoti Verma*(Research Scholar, Department of Commerce, S.S.V. College, Hapur, CCS University, Meerut, Uttar Pradesh, India) *Corresponding author's Email
Verma, Jyoti (2019), “A Study of the Performance of Microfinance Institutions in India in Present Era- A Tool for Poverty Alleviation”, MERC Global’s International Journal of Management, Vol. 7, Special Issue 1, pp. 72-81.
Submitted: February 28, 2019, Revision received: March 27, 2019, Accepted: April 05, 2019
The purpose of this research paper is to identify how microfinance is made available in the rural areas for needy people and also how the microfinance institutions can check or reduce the poverty with the help of providing microfinance. In a country like India 70 percent of the population lives in rural areas while the rest of the population, i.e. 30 percent resides in urban areas and 60 percent depend on agriculture (according to the World Bank reports), micro-finance can play a crucial role in providing financial services to the poor and low income people. Microfinance means a range of financial services like deposits, instalment payments, loans, money payment services, money transfers, insurance, savings, micro-credit services to the poor and low income individuals. Microfinance also refers to those financial services which include providing tiny loans, credits facilities and deposits that are provided to the people at the time of their urgent needs who operate small businesses or enterprises. Microfinance also helps to provide loans to the poor and needy people at a very low interest rate. At present, there are many societies, companies, entities, trusts, bodies and such other institutions that are engaged in providing microfinance services to the poor people for their household purposes as a complementary to the banking system. In a country like India, there is always the importance of microfinance because there are a number of people who are living under poverty and have lack of money and also they do not have any access to the facilities provided by banks.
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