Tag Archives: Mantra

Case Study about Micro Finance the New Mantra of Rural Finance to Reduce Poverty

Introduction: The rural finance policy pursued in most developing countries beginning from 1950s was based on providing subsidized credit through state controlled or directed institutions to rural segments of population. The key problem areas visualized in rural financial markets includes- lack of credit in rural areas, absence of modern technology in agriculture, low savings capacity in rural areas and prevalence of usurious moneylenders. Emergence of micro credit in late 1970s and early 1980s in the backdrop of growing world attention on deficiencies of earlier approach in rural finance explains much of its dominant theoretical underpinnings.

Micro Finance and Poverty Relief in India: A significant amount of the underprivileged people in India is somehow able to tailor their financial resources in a way that they can realize their ambitions vis-‡-vis their houses or other plans. However with the introduction of micro finance in India, the standard of living of the poor section of the population is expected to improve. Micro finance services are designed to help the underprivileged to increase their earning, consolidate their properties and even gain a decent financial stability in life. The advantage of availing the micro finance credit over the more traditional means is the unwillingness of the later to serve the underprivileged people.

Click here to read more on Micro Finance

• micrifinance the new manta od rural finance to reduce poverty
• the new mantra of rural finance to reduce poverty