Need, Issues & Impact of Microfinance on Living Conditions of People- A Case Study of SHG, Mf in Thane)

Abstract

Today microfinance has become a familiar term that many associate with financially sustainable poverty reduction. But some, argue that it make poor people’s lives even more rigid by making them slaves of debt. Seeing that no country in the world has more clients associated with its microfinance sector than India, there is a need for examining the quality of the growth in the Indian microfinance movement. The initial motivation for this research was to understand & study the real scenario of microfinance its implications, needs &impacts on conditions of people in Thane area the purpose of this work is to Suggest develop, an effective system of microfinance which will help poor people in Thane. The author focuses on the need issues in implementation and impact by considering the challenges for MFIs. To test the impact on the lives of people in Thane the paper uses data from a survey of clients, crisil database & other stakeholders of MFI, which is collected by the author during 2011-2012. Finally, there is an attempt to define the role of MF participation on poverty alleviation in selected area using econometric techniques, showing a correlation between income, SHG groups, MFI contribution &poverty level in Thane. A further motivation was the desire to study the facts, evaluate build effective models and to create a prototype solution in MF.