Financial services can give power in the hands of poor households, allowing them to progress from hand to mouth survival to planning for the future, acquiring physical and financial assets and investing in better nutrition, improved living conditions health and education. Today micro-finance programs and institutions have become increasingly important components of strategies to reduce poverty or promote micro and small enterprises development. Main purpose of micro financing has been to raise the leaving standard of the weaker section of society especially women, poor, rural and deprived persons etc. in rural semi urban or urban areas to increase their income levels and improve their living conditions by promoting a need based policy and programs. The present paper deals with the interlink age of changing nature of development, poverty alleviation and micro finance. The present paper is an attempt to examine the role of micro fiancé in India with reference to growth and poverty alleviation. The paper also highlighted the relevance and validity of Micro finance in growth and poverty alleviation. The findings suggest that no country in the world can grow without the fulfillment of basic human needs. Microfinance is a very good effort to serve the marginalized communities. Millions of people live in poverty, hunger, malnutrition and suffering from many diseases. The achievement of micro finance is not as per expectations due to several factors. Problems associated with microfinance need immediate attention and early resolution. Need of the hour is to change this mindset and reconstruct our policies in such a way that it matches with the needs of individuals in particular and nation in general.
Micro-finance has become one of most discussed subjects in the last two decades all over the world. Today micro-finance programs and institutions have become increasingly important components of strategies to reduce poverty or promote micro and small enterprises development. Micro credit or microfinance is appropriate where non-government organization and microfinance institutions supplement the loans with other financial such as saving, insurance etc. The United Nations General Assembly adopted 2005 as the international year of micro credit to “address the constraints that exclude people from full participation in the financial sector”. ADB defines micro finance as “the provision of a broad range at financial services such as deposits loans, money transfers and insurance to small enterprises and households.” The role of micro-finance as the most suitable and feasible alternative in accomplishing the goals of growth and poverty alleviation. Stable access to financial services can help poor to take control of their lives. Financial services can put power in to the hands of poor households, allowing them to progress from hand to mouth survival to planning for the future, acquiring physical and financial assets and investing in better nutrition, improved living conditions health and education. The UN declared the year 2005 as the International Year of Microcredit. The UN years of Micro credit in 2005 indicated a turning point for microfinance as the private sector began to take a more serious interest in what has been considered the domain of NGOs.
Author: 1. Dr. Arun Kumar Sharma & 2. Mr. Praveen Singh