Microfinance in India

It is worldwide accepted fact the micro-financing system is a very powerful instrument for eradication of poverty. In the words of Prof. Mohammad Yunus we can eradicate poverty from the world with the effective use of micro-financing system and can put poverty in museums. Thus our forthcoming generation will see it in museums. In India a proper microfinance system was started in 1992 on the initiative of NABARD to link the poorest of the poor thought the country with banking system so as to enable them to adopt the habit of thrift and saving and can borrow micro level loans for micro level business enterprises and for other needs from SHGs which is not possible directly from the banks. Today there are more than 40 lakh SHGs linked with banks. Also in this field a good no. of MFIs are working throughout the country under NBFC. This study is a humble effort to assess the impact of micro-finance on socio-economic empowerment of the people working in the non-farming sector and attempts to suggest policy measures for effective and efficient administration of micro-finance and evolving out mechanism for proper monitoring and performance evaluation of SHGs and their linkages with banks and markets.

This book is the outcome of a UGC Major Research Project and divided into eight chapters:
(i) Introduction
(ii) Review of Literature
(iii) Growth and Development of Microfinance in Bangladesh and its Relevance to India
(iv) Growth and Development of Microfinance in India
(v) Functioning of SHGs
(vi) Constraints and Problems in Non- farming activities
(vii) Impact of Microfinance on Women Empowerment
(viii) Conclusions & Recommendations