Progress of Micro Finance in Rural Development

The present paper discusses the detailed role played by the microfinance models like Self Help Groups- Bank Linkage Model, Micro finance Institutions etc in the rural development by focusing on its impact on poverty, women empowerment, technology application and household level role. It basically studies the progress of such models in the terms of loans disbursed and loans outstanding to the beneficiaries under the various schemes like National Rural Livelihood Mission (NRLM) & National Urban Livelihood Mission (NULM). It indicates the needs of rural and women entrepreneurs and challenges faced by them with respect to financial services .The motive is to draw lessons which will be helpful in exploiting the potential of microfinance in India, outlines the areas of concern for the government policy towards this important sector and suggests ways to scale up the access to finance for the poor.