Micro-Finance Programmes : Growth, Issues and Challenges

Abstract

The notion of Microfinance received an increased nnomentum in the after the World Summit for Social Development which was held in Copenhagen in 1995. The Copenhagen Summit emphasized the importance of improving access to credit for small producers, landless farmers, and rural women. But when we study about the credit for poverty alleviation, some questions needs to be answered. Is the mechanism of micro-finance viable in India? Microfinance offers savings, credit and insurance services to the poor especially rural women. However, it has been observed that in India women generally have limited or no control over their money, because husband or male family member makes all the important decisions in the family including economic decisions. This paper focuses on the experience of Micro-finance programmes in the Indian context. The paper portrays the limited access of credit to Indian rural women. The paper undertakes the study of various formal and informal finance institutions' activities in India such as Rural Bank, SEWA (Self Employed Women's Association) etc. The paper concludes with the belief that women's empowerment needs to be a counterpart of every governmental policy and empowerment cannot be assumed to be an outcome of one single programme. |t must be incorporated and acknowledged in the planning procedure and economic policies.