Analyzing the Facilities and Awareness Level of People about Micro Finance in Coimbatore City

Abstract

Microfinance is the provision of broad range of financial services such as deposits, loans, payment services, money transfers and insurance to poor people and low income households and their micro enterprises. It is an effective tool for making the banking services accessible to the rural unbanked areas. Improved access and efficient provision of savings, credit and insurance facilities would enable the poor to set up micro enterprise, build up economic assets, manage the risks better and enhance income earning capacity and resultantly improve their standard of living. India is a country of villages even today but on account of lack of infrastructure resulting in lack of opportunities for the population migration of youth continues unabated. The urban centers are getting flooded with masses. To stop this migration we have to provide opportunities to under privileged people of rural areas. Microfinance is a major tool available to create opportunities and help people to raise their quality of life. Although this fact is well established and understood the approach taken to achieve is yet to prove itself and hence despite huge money being made available for these projects success is nowhere visible. The business correspondent and business facilitator model envisioned by RBI and commercial banks needs major revamp. In the development paradigm, micro-finance has evolved as a need-based policy and programme to cater to the so far neglected target groups (women, poor, rural, deprived, etc.). Its evolution is based on the concern of all developing countries for empowerment of the poor and the alleviation of poverty. Development organizations and policy makers have included access to credit for poor people as a major aspect of many poverty alleviation programmes. Micro-finance programmes have, in the recent past, become one of the most promising ways to use scarce development funds to achieve the objectives of poverty alleviation. Furthermore, certain micro-finance programmes have gained prominence in the development field and beyond. The basic idea of micro-finance is simple: if poor people are provided access to financial services, including credit, they may very well be able to start or expand a micro-enterprise that will allow them to break out of poverty. Thus, micro-finance has become one of the most effective interventions for economic empowerment of the poor.