IMPACT OF MICRO FINANCE TO DEVELOPMENT IN RURAL SECTOR OF THE INDIA

Author Name: Dr. S. Prabakaran

Volume/Issue: 03/04

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/09.2022-83786472/UIJIR

Affiliation:

Assistant Professor of Economics, Gobi Arts & Science College, Gobichettipalayam, India

ABSTRACT

Microfinance refers to small savings credit and insurance services extended to socially and economically disadvantaged segments of society. It is emerging as a powerful tool for poverty alleviation in India. The prospect of Micro Finance is dominated by SHGs (Self Help Groups) – Banks linkage Program. Its man’s aim is to provide a cost-effective mechanism for providing financial services to the poor India fails under low-income class according to World Bank. It is second populated country in the world and around 70 % of its population lives in rural area 60 % of people depend on agriculture, as a result there is chronic underemployment and per capital income is only $ 3262. This is not enough to provide food to more than one individual.

Key words: Microfinance SHGs MFIs NABARD