• DHARMENDRA KUMAR
• Dr, Vedprakash

The year 2005 was dubbed the International Year of Small Loans by the United Nations. Since then, funding has been an effective tool for reducing poverty. Microfinance is a financial services provider for low-income customers, including consumers and self-employed, who are often denied access to banks and related services. In general, the organization aims to “provide a middle ground for many poor and impoverished families to permanently have access to adequate housing for a range of high-quality financial services, including not only debt but also savings, insurance, and money transfer.” Those who promote small grants often believe that such benefits will benefit the poorest of the poor. The strong growth of the microfinance industry not only enhances market power but also through the conscious actions of national government, non-governmental organizations (NGOs) and donors who see small funds as an effective tool to eradicate poverty. The strong pressure of these large and growing subsidies has shown that the national economic and social impacts are significant and need to be considered in more detail. This paper argues that Micro Finance of money can be considered important factors in effective poverty reduction. It shows that the affordable and effective provision of small loans can enable the poor to use it more easily, manage their risks better, gradually build their assets, develop their small businesses, improve their ability to earn money and enjoy an improved quality of life. Small-scale financial services can contribute to the development of resource allocation, market promotion, and adoption of better technology; thus, microfinance helps to promote economic growth and development

Micro Finance, NGOs, MFIs, Poverty

"Micro Finance - Poverty Reduction Tool", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 5, page no.g467-g473, May-2022, Available :http://www.jetir.org/papers/JETIR2205751.pdf

"Micro Finance - Poverty Reduction Tool", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 5, page no. ppg467-g473, May-2022, Available at : http://www.jetir.org/papers/JETIR2205751.pdf