An appraisal of microfinance schemes of the state bank of India a case study of the district of Bhopal

Abstract

The current financial system around the globe, exhibits that more than newlinehalf the population in the world- around three billion do not qualify newlineto take out a loan from a bank (Muhammad Yunus).This reason turned newlineout to be the actual driving force behind the birth of the microfinance newlinemovement stating from Grameen Bank in Bangladesh in 1983 to newlineGrameen America movement today. Microfinance has received newlineincreasing attention as an effective strategy to alleviate poverty by newlineproviding financial services to the poor who have little or no access to newlinecapital and formal financial services, as well as providing additional newlinesupport services such as training on education, healthcare and other newlinebasic needs. Yet despite the increasing attention and reputation that newlinemicrofinance institutions (MFIs) have achieved, their contribution to newlinepoverty alleviation on a global level remains limited. newlineThis thesis defines microfinance as an ongoing revolution to transform newlinethe financially excluded into the banked population, aiming at newlinetransforming the difficult process of obtaining credit into a simpler, newlineaffordable and convenient one. The low income groups are often found newlinevulnerable and lack an easy access to financial services. Microfinance newlineprograms introduce a spectrum of financial services and emerge as a newlineconsolidated public policy instrument to promote financial inclusion. newlineFinancial inclusion endeavors to deliver financial services at newlineaffordable costs to section of disadvantaged and low income groups. It newlineis becoming a pivot concern for all banks and financial institution in newlineIndia for a last few decade. newline