Non-Government Organisations as a Catalyst o f Micro Finance

Abstract

Micro-finance1 through self-help groups2 (SHGs) in the recent past has emerged as a potential instrument for poverty alleviation and women empowerment. It is believed that micro finance through SHGs enables the women to save, and to improve economic condition, confidence, household security, while reducing dependence on moneylenders, improving food security, enhancing the access to health and education, enabling the poor to undertake income generating activities, etc. Thus, this system not only provides credit, but also acts as an important input for the development of poorer sections of the society in general and women in particular. The non governmental organisations (NGOs), co-operatives, government and banks are the maj or promoters of SHGs in India. In this context NGOs being closer to the communities, serve better than other development agencies like Cooperatives, Government, Banks and consulting companies, and become one of the suitable and most effective promoters of micro finance activities in India. Thus NGOs, play a significant and efficient role in promoting SHGs and empowering women.