Volume : I, Issue : VII, April - 2012

Micro Credit – Two Sides of the Same Coin

R. Durga Rani, J. Gnanadevan, Dr. R. Ganapathi

Abstract :

Since 1970s, developing countries, including India, have increasingly focused on micro credit to facilitate the access of poor households to financial services like credit, savings, insurance etc. As the rural population in India, forming about two–third of her total population is still dependent on agriculture, there is a crying need for timely and adequate availability of funds for agricultural and rural finance is a must for improving the lot and income of the poor. Quite appropriately, agricultural development had been given due importance right from India’s First Five Year Plan (1951–56). The key problem of agriculture, carried on in far–flung rural areas mostly by poor, small and marginal farmers and weaker sections of the society, is finance. Thereafter, in each Plan period, there has been a continued emphasis on rapid and progressive institutionalization for supply of timely and adequate credit–support to the poor, small and marginal farmers and weaker sections of the society for enabling them to adopt modern agricultural technology and improved agricultural practices for enhanced growth and production. As part of poverty alleviation measures, the Government of India has implemented self–employment programmes like Swarnajayanti Gram Swarozar Yojana, where the major emphasis has been laid upon Self–Help Group (SHG) formation, social mobilization and economic activation through micro–credit finance. Simultaneously, the Government also supports National Banks for Agriculture and Rural Development (NABARD) and other Government and non–government organizations to take up activities like group formation, micro–credit and economic activation. This article analyses the pros and cons of the SHG‘s movement in India. It gives a bird’s eye view of the SHG’s scenario and highlights both the positive and negative growth of SHG’s.  

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Article: Download PDF   DOI : 10.36106/ijar  

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R. Durga Rani, J. Gnanadevan, Dr. R. Ganapathi Micro Credit – Two Sides of the Same Coin Indian Journal of Applied Research, Vol.I, Issue.VII April 2012

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