• Sonam

The present study highlight the role micro - finance plays in rural development by providing finance and creating employment apart from the other non-credit benefits. We focus on the challenges faced by various agencies in providing micro-finance in the contemporary context and give important policy suggestions to overcome them. By making use of secondary data, the study explores the role of micro finance in rural development and the various challenges it is facing with the help of basic statistical analysis such as figures and diagrams based on data from government reports and surveys. Both in terms of number of SHGs formed and the credit outstanding, the program has exhibited phenomenal growth. Self help group can be considered an instrument for the holistic empowerment of poor as it promotes savings, entrepreneurship, employment and women empowerment. However, there are a number of challenges faced by the micro-finance sector including the recent disintegration of SHGs. We suggest that the solution lies in creation of dedicated self help promoting institutions and supporting infrastructure for micro finance. The present study helps in appreciating the role played by micro finance in the upliftment of the rural poor. However, to reap the benefits of the program, political will is required to make the micro finance work by providing handholding support to micro finance clients as well as spending on infrastructure.

Micro-finance, SHG, rural development

"Microfinance- A Tool for Rural Development", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.993-1004, June 2019, Available :http://www.jetir.org/papers/JETIR1907140.pdf

"Microfinance- A Tool for Rural Development", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp993-1004, June 2019, Available at : http://www.jetir.org/papers/JETIR1907140.pdf