IMPACT OF MICROFINANCE ON SOCIAL ECONOMIC AND CAPABILITY WELL BEING OF FAMILIES BELOW POVERTY LINE WITH SPECIAL REFERENCE TO DEOGHAR DISTRICT IN JHARKHAND

Abstract

In the development paradigm, microfinance has evolved as a need-based programme for newlineempowerment and alleviation of poverty to the so far neglected target groups (women, poor, newlinedeprived etc.). It has also become one of the most effective interventions for economic newlineempowerment of the poor. (RAJENDRAN, 2012) In this context, the present study focuses newlineon the impact of microfinance on the social economic and capability well-being of people newlinelanguishing Below Poverty Line (BPL) in the Deoghar district of Jharkhand. newlineMicrofinance, in simple terms, means providing financial assistance, in the form of a loan, newlineinsurance, saving, fund transfer, training to the small entrepreneurs and small businesses, newlinelacking access to banking and related services (SINGH, 2014). Microfinance as Prahalad, newline2005 defines, a scheme for provisioning small loans to impoverished entrepreneurs in lessdeveloped countries . This definition of Prahalad, is often cited in the literature as the newlinequintessential example of a business solution to global poverty. newlineNeed of microfinance in India: In India many estimations shows that 350 million people live newlinebelow poverty line. The annual credit demand by the poor in the country is estimated to be newlineabout Rs 60,000 crores. And the cumulative disbursement under all microfinance newlineprogrammes is only about Rs 5000 crores. But only about 5% of the rural poor have access to newlinemicrofinance (NABARD, 2011) newlineNeed of microfinance in Jharkhand: As per the latest survey in Jharkhand, 36.96% of the newlinepeople live below the poverty line as compared to the all India average of 21.92% (Planning newlineCommission., 2011-12). The Successes of such poverty alleviating programmes like newlinemicrofinance are much required in Jharkhand. The literacy rate of Jharkhand is 67.6%, which newlineis less than the national literacy average of 74.04% (Planning Commission., 2011-12).The state has also hilly and difficult terrain covered with forests and 26% of the total newlinepopulation is tribal. Significant infrastructure gap, poor social indicators