Microfinance Impact on Rural Household in India

Abstract

The paper aims to search the major shares of microfinance in the poor and ultra poor’s sustenance and concomitantly the sense of ownership developed in the assets created in the process, both tangible and intangible. The case study approach has been used in the states of Tamil Nadu, Andhra Pradesh, Madhya Pradesh and Maharashtra of India. The study finds that microfinance can play a huge role in helping a poor community find ways through the market to get new opportunities, to earn new income, to start saving, making investments and start the process of climbing the ladder of economic development in children, in business or farm and continuing up the process of improving skills, specialization, new business ventures and so on. The paper emphasize on the actual village scenarios and how the life of the people have changed with the opening up of SHGs in India.