effectiveness of microfinance: a literature survey
G.L. Sharma,Himanshu Puri
Published in International Journal of Advanced Research in Business Management and Administration
ISSN: 2348 -2354 Impact Factor:1.48 Volume:1 Issue:1 Year: 08 December,2013 Pages:105-114
Abstract
Poverty reduction & social empowerment, the prime objectives of any developing economy seem to be a wild-goose-chase for them as it requires 100% financial inclusion. In the developing country like India where around 42% of the population lacks banking services, Microfinance, i.e. ‘Banking for the poor’, offers an appropriate solution. It provides various financial services i.e. micro credit, micro savings, micro insurance, and other financial products to the economically weakened strata of the society as it plays like an innovative agent of economic change. It was always been in question regarding its effectiveness, as a financial tool, to bring in economic growth and social empowerment in the society. This study intends to critically evaluate the effectiveness of Microfinance and will look into the studies conducted by various academicians, researchers, scholars etc. The present paper is basically the compilation of various views and opinions documented by various authors. A complete literature survey has been done to evaluate various dimensions relating to the microfinance’s effectiveness. Microfinance has definitely empowered women and acted as a social empowerment tool. It has influenced the poverty reduction positively but it was argued that it has still not been able to reach the larger poor masses and thus some regulatory changes are required. Microfinance has come a long way but still it has to climb more steps of the ladder.
Kewords
Microfinance, MFIs, Poverty Reduction, Economic Growth, Social Empowerment
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