Author(s): Ms Minu B. Madlani and Dr.Jitendra K. Aherkar
Microfinance refers to small savings, credit and insurance services extended to socially and economically disadvantages segments of society. It is emerging as powerful tool for poverty alleviation in india. India falls 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 capita income is only $ 3262. This is not enough to provide food to more than one individual. The obvious result is poverty, low rate of education, low sex ratio, and exploitation. The poverty reduction has become the object of unprecedented attention at national and international level. The scheme of Microfinance has been found as an effective instrument for lifting the poor above the level of poverty by providing them increased self employment opportunities and making them credit worthy. Thus the concept of microfinance gained growing recognition as an effective tool in improving the quality of life and living standards of poor people.