Role of Microfinance for Financing Poor People in India

Microfinance is considered as one of the most potential and successful tools which 3fight against poverty. Microfinance is a way of financing people with small financial need. Poor people are deprived of getting banking facilities for their inability to provide valuable security. That is why micro financing emerged. Micro financing covers financial services like, savings, insurance, training etc, in addition to micro credit. Traditionally, the position of women in developing nations like India has been poor compared to men. Women are poorer, have low education and go through various social hazards. The early 1990s have witnessed liberalization and globalization. Now liberalization and globalization have opened our eyes. It is well recognized notion that without upliftment of the condition of women in a society a nation cannot be developed in a competitive world. The present paper discusses conceptual framework of microfinance and region-wise progress of Savings Linkage of Self Help Groups (SHGs) with Banks from 2018-19 to 2020-21 in India. Also this paper covers agency wise distribution of SHG Bank Linkage Programme in India. Lastly, this chapter depicts how women are financially benefitted from microfinance institution through Self Help Groups. The findings of this chapter are expected to be a valuable concept for microfinance institutions, Govt. and SHGs in creating policy for overall development of India.