Suchergebnisse

Given that access to conventional financial services is rather limited, particularly in rural areas, microfinance serves as a significant driver of social and economic development. The purpose of this study is to analyze the effect of microfinance, with a focus on self-help groups (SHGs) and microfinance institutions (MFIs), in tackling poverty, women empowerment, and financial inclusion in India. This study, based on secondary sources and the analysis of such, shows that programs like the SHG-Bank Linkage Program have enabled low-income households to access credit and led to improved income generation and financial stability. Women, who comprise the majority of MFI clients, have particularly benefited, gaining greater empowerment and decisionmaking power within their households and communities. Despite these successes, however, challenges remain, such as regional differences in accessing microfinance resources and rising non-performing assets (NPAs), which were worsened by COVID-19. The study also highlights the immediate need for targeted interventions such as financial literacy programs, improved risk management, and digital financial solutions, in order to keep microfinance's role in inclusive growth.