Magnitude Topic Of Micro Finance

We know that evil circle of illiteracy, malnutrition; health hazard and ignorance are compelling the poor people to remain under poverty line and in hardship from generation to generation.

People are allows try to brake this Evil circle. For this financial strength is needed. Loan can play a vital roll for financial strength of any body. But Loan from bank and such specialized organization can be taken subject to face different formalities and placing security which are beyond reach of the poor. On the other hand, interest and bindings of the borrowed money from the money lender ruin the poor borrower. In view of the above facts, micro-credit started to develop socio-economic condition of the poor. During the decade of 1980, the micro-credit got importance. In the meantime, micro-credit recognize through out the world, as a impotents tools for braking the Evil circle of the Poor.

Microfinance is a development process, by which-

• Poor & hard core poor people and low income clients are targeted

• Develop their of self confidence

• Ensure their benefits

• Ensure the self-employment

• Ensure capital for their businesses

• Ensure need base financial services

• Increase their Capacity and Business management

• Ensure Social development with Needs & Right base services

• Graduate borrower of micro-credit & micro enterprise are also received need base financial services.

Micro Finance is development approach. Micro Finance refer to the provision of financial services to low income clients, including the self-employed, savings, credit; and provide other social development services. Micro Finance is Micro Credit plus services such as development of self confidence, health services, training, financial literacy and management capabilities, literacy and basic education etc. as ultimate demand based package services towards the economic and social development of the people by which they inshore their Sustainable Development

• Microfinance can reduce poverty, vulnerability, and empowering men to choose when and how to access other development services such as income, health and education.

• There are trade-offs between social and financial objectives and do reach and impact on the poorest and achieve financial self-sufficiency.

• Microfinance can address the poverty level of potential clients that determines access and impact by the appropriate design.

• Mature clients of Microfinance are significantly reductions in poverty and no longer with poverty.

• Fulfillment of basic needs. Clients able to significant improvements, particularly health care, housing, clothing etc.

• Fulfillment of basic needs. Clients able to significant improvements, particularly health care, housing, clothing etc.

• Reduction in risk and vulnerability. Clients able to income smoothing, increase and diversification, increases in savings and assets, and improved financial and business management skills.

• Microfinance inshore the Women’s empowerment. Clients able to achieve social impacts.

• The integration of education services, contributes to impact on basic needs and empowerment.

• The poorest clients benefit more by the association.

• Microfinance able to Balancing Social and Financial objectives.

• Clients are benefited by linkages.

• Microfinance is conciliation between social and financial objectives.

• This has compromised the opportunities for maximizing poverty impact and client performance.