Micro Finance: Achievements, Challenges and Future in India. (An Empirical Study in Vellore District, Tamil Nadu)

Abstract

Micro finance plays a vital role in reducing poverty since it paves way for employment and empowerment which leads to economic development. Empowerment, poverty reduction and development are interrelated and interdependent. Empowerment leads to economic development which results in poverty reduction and sustainable development and micro finance through SHG is considered as a tool for empowerment. The purpose of this paper is to critically analyse the real impact of microfinance on the changes in income, expenditure and consumption pattern in rural households, empowerment of women and constraints. The study reported that there is a significant increase in income, expenditure and consumption pattern and there is an appreciable empowerment in political space than economic empowerment and negligible social empowerment of women as result of participating in micro finance through SHG programme. Delay in sanction of loan and inadequacy of the loan amount are the major challenge.