EVALUATION OF MICROFINANCE INSTITUTIONS IN ODISHA a CASE STUDY OF SKS INDIA

Abstract

Poverty is a major issue in India. In spite of a lot of poverty eradication plans by the central newlinegovernments since independence, poverty in India is still pervasive; especially in rural areas where newline70 per cent of India s 1.25 billion populations live. It is one of the fastest growing economies in newlinethe world and yet its wealth is hardly redistributed across the population. newlineEmployment generation is the only solution to combat poverty. However, it is impossible newlinefor both the public and private sector to provide employment to one and all. So, it is essential for newlineany government to engage the underprivileged and poor in some income generating activities. This newlineeffort needs capacity building, hand holding and provision of finance. Most of the people who live newlinein rural areas of our country have no access to formal financial institutions like bank. The banks newlinealso cannot reach this section of the population as it is costly for them to lend to the poor and newlinemoreover they do not have any assets to be used by the banks as collateral securities. So, in order newlineto meet the credit needs of the poor people microfinance institutions (MFIs) were established. A newlinemultiple financial services such as microcredit, savings, insurance, money transfer and other newlinefinancial products are being offered to the poor households through MFIs since last two decades newlinewith the sole objective of poverty alleviation. Shri Mahila SEWA Sahakari Bank of Gujrat newline