Microfinance on Poverty Alleviation: Empirical Evidence from Indian Perspective

Abstract

This paper is a modest attempt to collect data from northern, southern and central India to analyse the impact of microfinance on poverty through imperial evidence from across the country- The respondents were divided between two groups, Participants and Non-Participants, Participants were members of Self Help groups (SHGs) which have benefited from which scheme? and received bank loans. Non-participant members were those who were eligible for microfinance 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; - have not availed any benefit from the microfinance 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.