Advantages And Disadvantages Of Small Scale Credit

However, the author essentially opposes any government intervention towards leading efforts for women. Half the Sky does a good job at creating awareness of these atrocities that occur to women in other countries and how those same atrocities can go unpunished. Narayan, a critic, really helped understand one real issue by stating that, “The ubiquitous insistence that women’s inclusion is ‘good for development’ is not identical to showing that particular forms of development are good for [all] women. Many ‘economic opportunities’ the book celebrates, such as micro-credit, requires shoeless women to boot-strap themselves to ‘success,’ working harder and harder to compensate for the improvidence of men-folk, the impoverishment of nation states, the depredations of corporations, the vagaries of markets and the destabilizing neo-liberal policies of international financial institutions.” While micro-credits’ main targets are to help women in developing nations, it can sometimes do more harm than good in the basis of exploitation sometimes through predatory lending (fraudulent practices). Muhammad Yunus is cited a lot when it comes to microfinance and women living in impoverished foreign countries.

Online peer to peer lending is defined as the “transaction using the internet in which one or more individuals lend money to one or more other individuals”. The keystone of P2P is that individuals, rather than institutions, stand on both sides of the transaction. It has been said by the P2P sites that by eliminating the middle man i.e. the commercial bank in traditional loans- investors can earn high returns and the borrowers can obtain financing at lower rates.

All across the world high poverty levels in certain areas is extremely common especially in overpopulated, less developed regions. It was not until rather recently that the idea of poverty and helping those less fortunate became a socially accepted topic for those living in developed regions. “The turn of the century as been marked by the emergence of a remarkable global conscience: an awareness of world poverty and the articulation of the will to end poverty” (Roy, 6). This newly founded mindfulness of poverty in the world has led to the need for actions, and in order to deal with poverty and under development the idea of microfinance has been created. India has experienced microfinance in both good and bad ways, and I want to use this

One of the most common forms of intervention that is imposed throughout the world to benefit both men and women (though primarily targeted at women) escape from a poverty trap is microfinance. Numerous studies about microfinance have been published, all of which seem to present a different perspective on whether the program is actually effective. One interesting study conducted in 2006 by Mark Pitt, Shahidur

The microfinance industry currently serves over 80 million poor entrepreneurs globally, about 70% of who were among the poorest when they took their first loan. These clients fit the profile of those at most risk of contracting HIV/AIDS. Women, who bear the brunt of global poverty, are also the primary beneficiaries of microfinance. Microfinance has typically targeted women-led microenterprises

Microcredit is a financial innovation that is considered to have originated with the Grameen Bank in Bangladesh, and Muhammad Yunus is its founder. This Bank offers collateral free loan to rural poor women. Women are afforded the opportunity of education and access to health care, reduced unemployment, so that their families and communities prosper. The future of the Microcredit is very bright now because it plays an important role for the development of poor families. This system is being introduced in both developing and developed countries of the world. The relationship between Muhammad Yunus’s Grameen bank and women’s lives is important because he helps poor women to be independent and economically support their family. Because of

On such background it is easy to conclude micro-credit service is not feasible for them. But who will deny they are already enjoining the service though in a different way. Since ages there remains a practice of private lending in the subcontinent. The lenders provided the poor the service with high interest without any collateral. Names of Muslim Pathans and Hindu Marwaris are referred to in this connection. Not only that the poor makes groups and collect amount from the members of the group/s for keeping it in safe hand though sometimes the safe-hand turns into rogue and leaves no stone unturned to pocket fraudulently their savings. The amount so collected is given to members turn by turn. Further they buy gold, jewelry, animals, buildings etc as investment. In case of need they can be turned into cash.

Microfinance is an emerging important financial factor which supply the basic financial services to poor and low-income households and micro-enterprises. Microfinance comprises several tools such as savings, credit, leasing, insurance and cash transfers. It 's role is to improve financial access of the poor and small economic players and thus help them to build assets, which means a contribution to poverty alleviation. These services are provided by a variety of institution, which can be divided into credit and saving cooperatives and association, banks, NGOs and non-financial and informal sources. . Providing financial services helps rural households to plan and manage consumption and investments, able deal with risks and improve their living conditions, health and education by smoothing household cash flow and increasing disposable family income.This paper presents an assessment of informal borrowing and lending in rural finance with a focus in its advantages and disadvantages as well as how it would relate to microfinance.

continue to be a road block to financial inclusion in many states. Apart from this there are certain in Current model which is followed. There is inadequate legal and financial structure. India being a mostly agrarian economy hardly has schemes which lend for agriculture. Along with Microfinance we need to focus on Micro insurance too.

Microfinance are the financial institutions who provide loans or funds to individuals who do not possess the actual documents which can be submitted to banks to seek/borrow loans. These individuals can be entrepreneurs and small scale business owners. Microfinance institutions mostly function in developing countries when compared to developed countries. They are almost similar to banks with regards to the nature of functioning, for instance, they fund people who would like to start a poultry business (farmers), transportation and restaurants.

Microfinance is the provision of small scale financial services to low income or unbanked people. It is about provision of “a broad range of financial services such as deposits, loans, payments services, money transfers and insurance, to the poor and low-income households and their farm or non-farm micro-enterprises” (Mwenda and Muuka, 2004:145) . This agrees with the Asian Development Bank (ADB) which defines microfinance as the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and their micro-enterprises . From the above definitions, microfinance is more than just provision of small loans also known as microcredit. It is about provision of various small scale financial services. Thus for this study, consistent with the above definitions, we use the term microfinance to mean the provision of small scale loans, savings, deposits, and other financial services to the poor. Institutions that provide these small (micro)

1. There is no significant impact of the services of microfinance institutions on the economic empowerment of women in Aligarh

Urban Co-Operative banking Sector is a vital constituent of co-operative banking system framework operation in the nation. These organizations assume an imperative part in the financial enrollment of lower and middle salary class of people. The Reserve Bank of India in its yearly provide details regarding patterns and advance in banking expresses that urban banks women urban banks are critical purveyors of credit to small borrowers and to powerless segments of the general public however is not turning out with any steady arrangements that will fortify the part of women UCBs.

Micro credit operation: In recent years AML has introduced micro credit operation to remove poverty. AML has made the credit facility so simple that one can easily take loan without much hassle and without mortgage or collateral. AML is not finishing the job after the loan disbursement; it makes sure that the borrower can make the most of the loan. That’s why AML provide sufficient training on various projects. The objective is to build the strength of under privileged people to face poverty. AML believes in teaching the technique, “how to catch a fish” rather than providing the fish. AML is running the micro credit operation in B.Baria as a pilot project. After the successful implementation AML has plan of replicating the project throughout the whole country. Other than the above mentioned activities AML is working

To study and analyze recent standing of Financial Inclusion in the Jammu and Kashmir State.