Micro Finance Schemes : An Insight into the Impact on Standard of Living and Level of Awareness Amongst Target Social Groups.astudy of Bhopal District

Abstract

Today if you look at the financial system around the globe, more than half the population in the world- around three billion – do not qualify to take out a loan from a bank (Muhammad Yunus).This reason turned out to be the actual driving force behind the birth of the microfinance movement stating from Grameen Bank in Bangladesh in 1983 to Grameen America movement today. Microfinance has received increasing attention as an effective strategy to alleviate poverty by providing financial services to the poor who have little or no access to capital and formal financial services, as well as providing additional support services such as training on education, healthcare and other basic needs. Yet the increasing attention and reputation that microfinance institutions (MFIs) have achieved, their contribution to poverty alleviation on a global level remains limited. The research paper aims to take an insight into the impact of microfinance schemes on the standard of living of the beneficiaries who have availed the advantage of such schemes in the district of Bhopal. The study aims to reveal the experience of these beneficiaries through careful investigation and analysis. The Microfinance schemes propose to aim at poverty eradication among the society. The objective of this study thus brings under its purview the examination of how these schemes have impacted greatly on asset acquisition and savings of the beneficiaries tocurb down their poverty level. A total of 720 beneficiaries of State Bank of India in Bhopal were selected as the study sample who had alreadyavailed the benefits of these Microfinance schemes. A primary questionnaire was formulated to record the experiences of these beneficiaries and thus the results were analyzed. Furthermore, the paper also examines the level of awareness about the microfinance schemes amongst the target social groups for whom these schemes have been devised.