Microfinance on Poverty Alleviation: Empirical Evidence from Indian Perspective

This paper is a modest attempt to collect data from northern, southern and central India to analyze the impact of micro finance on poverty through empirical evidence from across the country. The respondents were divided into two groups, Participants and Non-Participants. Participants were members of Self Help groups (SHGs) which have benefited from credit and had received bank loans. Non-participant members were those who were eligible for micro finance and formed SHGs, but did not obtain credit up to the time of the survey. As per the NABARD guidelines, SHGs are provided bank loans only after active existence of the groups for about six months since inception. Non-participants belonged to the group which was less than six months old at the time of survey and have not availed any benefit from the micro finance program. The study concludes that the socio-economic profile of sample respondents with experience of less than six months was completely different from the respondents with experience of more than six months.

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