Socio Economic Impact of Micro Finance in the Rural Transformation of Uttar Pradesh an Empirical Study

Abstract

The microfinance is a facility of providing monetary benefits given to entrepreneurs for establishment of their business. It is helpful for small and medium scale enterprises to establish their business. There are various microfinance schemes for the above mentioned objectives. These schemes are run by government directly or indirectly by various microfinance institutions. These financial support not only strengthen the rural economy but also plays an important role at aggregate level at macroeconomic scale. It provides an opportunities to emerging entrepreneurs to handle their financial challenges and capital needs. In developing countries like India the major population is facing the challenges of finance related issues thus this microfinance availability is largely helps to them in this regard. newline newlineBoth, the central and state government and their institutions provides various types of microfinance to beneficiaries by various schemes. There are various schemes such as Startup India, Make in India, Skill India by central government of India and finance or loan providing schemes by khadi gram udyog, Jila udyog, Startup at state level by Uttar Pradesh State government has played a major role in providing microfinance at grass root level. The microfinance is also helpful developing a particular area, city and state. It has many motives and goals to achieve like, fighting poverty in the country, enhancing employment and growth, currently it is about promoting Make in India program initiated by current government in the country. In India and its neighbour countries, it started holding roots around 1970. Microfinance are aimed at providing loans or credits to the under privileged people at very low or no rate of interests. Some time there are securities in lieu of the credit and some time there is no need of securities. Financial institutes like banks, non-profit organizations are involved in this process of lending loans and money. newline newlineIt helps in providing better opportunities in front of people so that this can be help