Year: 2017 | Month: June | Volume 6 | Issue 2
Micro Credit in Rural India with Reference to Poverty Reduction and Women Empowerment
Abstract:
Microcredit is a vehicle of change and helps in transforming the lives in rural areas. After the commencement of the Grameen bank in the field of micro-credit, it started to emerge throughout the countries. Self-Help Group (SHG), a homogeneous group of ten to twenty members, gets the micro-credit from the bank without any collateral. Under NRLM (National Rural Livelihood Mission) previously known as Swarnajayanti Grameen Swarojgar Yojana (SGSY), the micro credit to the SHGs helps not only in reducing poverty through the establishment of micro enterprises but also in bringing women empowerment for social change. NRLM functions as an engine for financial inclusion in the country. It aims to reach out all the rural poor families and to link them to sustainable livelihoods opportunities besides to strengthen the social mobilisation of women and excluded groups through the process of SHG-bank linkage. The role of microcredit helps to reduce poverty by enabling the poor household sustainable self-employment and skills wage employment opportunities besides it promotes to financial inclusion. It also nurtures entrepreneurs and provide skills for the job market. The sustainability of SHGs depends on the five principles or called panch sutra which includes regular savings, regular meetings, regular accounts, regular repayments and adherence to terms and conditions.
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