Abstract
Microfinance is gathering momentum to become a significant force in India. The Self Help Group (SHG) model with bank lending to groups of (often) poor women without collateral has become an accepted part of rural finance. The paper discusses the state of SHG-based microfinance in India and the opportunity untapped because of the huge existing demand-supply gap. With traditionally loss-making rural banks shifting their portfolio away from the rural poor in the post-reform period, SHG-based microfinance, nurtured and aided by NGOs, have become an important alternative to traditional lending in terms of reaching the poor without incurring a fortune in operating and monitoring costs. The government and NABARD have recognized this and have emphasized the SHG approach and working along with NGOs in its initiatives. In spite of the impressive figures, the supply side of microfinance in India is still presently grossly inadequate to fill the gap between demand and supply but it holds the promise to act as a great opportunity for the financial sector and the economy as a whole. This paper evaluates the different aspects of microfinance in Harda and Hoshangabad districts of MP.
Highlights
The second for the banker’s to know the banker’s perspective of financial inclusion what are the initiatives they take to reach every individual in the villages
A total of 150 respondents were randomly selected from 6 different villages for the survey (Figure 1)
Steps taken towards bringing lower income groups to the banking system has been successful to a significant extent, as the main causes observed earlier like distance of bank branch, unawareness about banking services has improved
Summary
1. To find that the knowledge about the bank functions and faith on the bank have a correlation. 2. To find that the knowledge about the bank functions and the satisfaction with existing bank has a correlation. Step 6: Totally 6 villages were visited and 150 respondents were interviewed. To find that the knowledge about the bank functions has a correlation with the satisfaction with the existing bank’s employees
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