Role of Self-Help Groups through Micro-Finance for Poverty Alleviation

Microfinance occupies a very strategic role in poverty alleviation and rural development in India. Microfinance provides financial services such as micro credit, micro savings and micro insurance to the rural poor. In the recent past it has become one of the most promising vehicles to achieve the objective of poverty alleviation and empowerment of rural women. Microfinance strategy in the form of Self Help Group (SHG) scheme as a part of formal credit delivery system is giving lot of freedom to Non-Government Organizations (NGOs) for setting up SHGs based on various models. Microfinance and Microcredit are interrelated concept. Microcredit gives more importance on loans while Microfinance includes support services where channels for thrift, market assistance, technical assistance, capacity building, social and cultural programmes are opened