Micro Finance, Self-Help Groups (SHGs) & Poverty Eradication in India

In India, micro finance is the provision of a diverse range of financial services and products - including small loans (micro credit), saving accounts, insurance, pensions, and money transfers - that are designed to assist those living in poverty who are not able to access financial services in the mainstream banking sector, because they have no collateral, formal identification, or steady income. The objective of micro finance is to help poor people escape poverty - leading towards economic development, employment, and growth - through the support of micro entrepreneurs and small businesses. Several micro finance institutions have succeeded in reaching India's poorest of the poor by devising innovative strategies. These include the provision of small loans to poor people - especially in rural areas, at low interest rates, without collateral. Above all, many micro credit programs have targeted one of the most vulnerable groups in society, i.e. women who live in households that own little or no assets. By providing opportunities for self-employment, these programs have significantly increased women's security, autonomy, self-confidence, and status within the household. This book examines the objectives of micro finance in India, looking at the role of the delivering agents and their interface with the needy, promoting economic growth with greater equity.