Micro finance is way to enrich the social and economic sector of society, after years of independence India is still suffering from global poverty, the poverty which means the basic need for survival is still a big question in front of us, there is so much imbalance between the wealth in rural sector of India, their proper growth, empowerment is a big question among us. Micro finance is way to enhance poor rural people by providing them loan, saving and give insurance to the people, to establishment of a new business, to come out from the money crisis which most of time compel them to do suicide, it’s like second way to get financial support on low interest rate. People who benefit from this is the poor people who do not get proper benefit from Government scheme, According to report, about 40 percent of rural India is still not connect to bank, so the weaker section of village go to money lender, who gives money on very high interest rate so that if they return the actual money, they still faces the problem with interest rate with rises exponentially, so to overcome this society economical mismatch, micro finance help them, the interest rate is not much high, and good thing is that they are 100% recoverable, there main priority is the rural sector of India. In past, report said that overall help in global poverty micro finance is helpful. The micro finance gives financial help in agriculture, fishing, horticulture and the small business for village prospective people. They also encourage the entrepreneur from the rural area by destroying the financial wall. One face on micro finance is SHG, which give women to participate and make they own group and nurture their skill of business and participation in administration.
In recent study the world bank report, more than 7000 institution that provide the micro finance, 16 million client and provided loan above 2.25 billion dollar and financial support.
There are mainly three micro financial institution in India which empower the rural India :-
- Grameen Bank
- Co-operative Bank
- Self Help Group.
- Grameen Bank
Grameen bank is the concept which first came in Bangladesh, muhammad yunus founded the concept of Grameen bank and for this they got Nobel prize, the main concept is behind that if any poor people want some money for starting new business, if they have no any guarantee or assets, they are still eligible for getting small amount of money which is generally less than several dollar, so that they set their business and earn money and meet their basic need, also it eradicate the poverty from our society. Large amount of population in village have no linkage with professional bank, so the main objective behind the Grameen bank to set up the bank in rural area, to link with village to Grameen Bank and provide them financial support like loan, saving or credit facility. Grameen bank send their representative door to door to meet the family representative so that they get aware and start their account with Bank. Its also empower their financial condition and also make them independent. If a person is beggar, and no more source of income, the Grameen bank is proving money to him, not for spending money on livelihood, in respect they help him to settle new business, which make him financial self-reliance.
2.Co-operative Society
Cooperative society is the another way to develop the weaker section of village, There is many co-operative society in India which help the weaker section by doing different- different work, their primary purpose to give financial support to rural people by providing them work. they generally weaker section of society, illiterate women and unemployed people, One such cooperative society is the Amul diary. They also provide infrastructure to the people like transportation, education and health. Co-operative society also help them for loan money, the regular working also help them to saving money and meet the basic need.
There is so many NGO and Government scheme connected to the cooperative society to help them, there is so many state which are in poverty, which get benefit from this.
Government and RBI with the help of NBARD provide financial support to these cooperative society, now government also provide certain guidelines to professional bank to provide 40 % loan to rural sector for empowerment as the loan rate in commercial bank is low. Participation of women in cooperative society is also empower our women by just not nurturing the skill of management and also break the society old rule, which lead to foundation of equal opportunity for women.
3.Self Help Group:-
Self help Group is the another way to eradicate the global poverty. On small scale, few people gather and setup the small co-operative society; they have few representatives who take care all the financial account management. Generally they take financial support from co-operative society, suppose five women form a self help group so first only two member are allow to take loan, once they fulfill the work next two worker get loan, this way chain continue, they held their own meeting, together they understand the problem and solve them by proper planning. Self Help Group, setup small institution like sewing work, so first they train the worker, once they trained and aware them with requirement. Together they work and fulfill the work, sometime they work in regular basis or sometime they distribute the profit after work. They also have saving scheme, so that if anyone need them they could also borrow from own group. By their own Group they are totally dedicated and better understand their need and work accordingly. NGO ‘s and government also encourage them to setup self help group because its work on root level with hard dedication and no corruption.
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