Abstract
Micro finance is called as providing small finance to low income population, including people and self- employed who could not access banking services. Poverty is one of the major problems in a developing country like India. Its main objective is to enable the poor to have a permanent access to banking services, not just borrowing but also savings, insurance etc. Micro finance is generated with the belief that access to financial services will help to come out of poverty. The growth of micro finance is pushed by government and non-governmental organisations and it is expected to play a significant role in poverty alleviation and rural development. Hence, Government of India has taken very many steps to alleviate poverty and bridge the gap between rich and poor so that the poverty is eradicated and the standard of living of the poor will improve. In this paper, it argues that the contribution of Microfinance institutions in poverty alleviation strategy in Vellore district.It shows that both access to finance and provision of micro credit will enable the poor in the district to satisfy their basic consumption needs, manage their risks in a better way, can build their assets gradually and steadily, develop their small enterprises, develop their income earning capacity and improve their standard of living. Micro finance also can contribute to allocation of resources in an efficient manner, promote markets, and to adopt technology. Thus microfinance helps to improve the standard of living, quality of life and thereby promote economic development. Hence, this paper tries to assess the functioning of microfinance intuitions and the impact on the poor in terms of socio-economic development.
Keywords: Investment, Housewives, Decision, Purpose, Influence.
References
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