Micro Credit and Rural India Concerning Poverty Alleviation and Women's Empowerment

Abstract

Microcredit acts as a catalyst for transformation, profoundly influencing the lives of people in rural areas. After the inception of the Grameen Bank in the microcredit domain, it began to spread across numerous countries. A Self-Help Group (SHG), made up of ten to twenty members, can obtain microcredit from the bank without requiring collateral. Through the National Rural Livelihood Mission (NRLM), previously known as the Swarnajayanti Gram Swarozgar Yojana (SGSY), the microcredit extended to SHGs not only helps in reducing poverty by encouraging the establishment of micro-enterprises but also fosters women's empowerment, leading to social change. NRLM serves as a key driver for financial inclusion in the country. Its aim is to link all rural impoverished families with sustainable livelihood options while also improving the social mobilization of women and marginalized communities through the SHG-bank linkage process. The role of microcredit is vital in alleviating poverty by enabling low-income households to attain sustainable self-employment and access wage employment opportunities, thus promoting financial inclusion. Furthermore, it aids in the development of entrepreneurs and provides individuals with skills pertinent to the job market.