Impact of Microfinance Programme on Employment Status of the Participants

Microfinance has emerged as a ray of hope among the various measure to wipe out poverty. In India, failure of formal finance to the poor has led to the growth of microfinance. Numerous traditional and informal system of credit was already in existence before microfinance came into vogue. NABARD a regulatory body defined microfinance as “the provision of thrift, saving, credit and financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve their standard of living”(Sen,2008). The paper also provide the progress of microfinance programme in Uttarakhand on the basis of secondary data. The present paper examines the impact of microfinance programme on employment status of the respondents in the State of Uttarakhand on the basis of primary data collected from the field. As the programme has increased the engagement of SHG group members i.e.; participants of the programme economic activities which result in the increase level of employment. Microfinance play an important role in the development of the state as the programme increased the employment status which result beneficiaries to come out of poverty and the standard of living also raised by accessing the basic requirements.