ROLE OF MICRO FINANCE IN POVERTY REDUCTION

 ROLE OF MICRO FINANCE IN POVERTY REDUCTION
Table of contents
1. Introduction:
1. Introduction
2. Rationale of the study
3. Research problem
4. Objective of the study
2. Literature review
1. Introduction
2. Micro Finance
3. History of Micro Finance
4. Principle of Micro Finance
5. Limitations of Micro Finance
6. Poverty
7. Tools for poverty reduction
8. Poverty eradication programmes in India
9. Role of Micro Finance
10. Role of Micro Finance in poverty alleviation across the world
11. Role of Micro Finance in poverty alleviation in India
3. Questionnaire
1. Introduction
2. Questionnaire for Managers
3. Questionnaire for customers or borrowers
4. Questionnaire for credit policy
4. Research methodology
1. Introduction
2. Research means
3. Research design
4. Type of research design
5. Research approach
6. Sampling technique
7. Types of sampling technique
8. Data collection
9. Comparison of qualitative and quantitative data
10. Methods of data collection
11. Methods of Data analysis
12. Limitation of research
13. conclusion
5. Data analysis
5.1 Introduction
5.2 Expected findings
5.3 Hypothesis
5.4 Analysis of questionnaire
5.5 Questionnaire for credit policy
6. Conclusion
6.1 Summary
6.2 Evaluation of results
7. Recommendations
8. References
1. Chapter 1: Introduction
1.1Introduction
What is poverty? Poverty is a hunger. Poverty is lack of shelter. Poverty is being sick and not
being able to see a doctor. Poverty is not having access to school and not knowing how to read.
Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a
child to illness brought about by unclean water. Poverty is powerlessness, lack of representation
and freedom (Smith and Stephen, 2005). Poverty is a single terminology but it’s strange to have
a lot many definitions associated with it and along with, it also possess a lot of problems and
suffering. From the statistical crunching of figures it is estimated that in the year 2010, there are
925 million hungry people in the world (Sen and Amartaya, 1999). To tumble down this
statistical figure, government is opting a lot many programs and schemes which includes the help
to the peoples below poverty line by providing fund through Micro Finance Bank.
Figure no. 1: Poverty figures around globe (from 1969-2010)
Microfinance is a kind of banking service which provides financial service to unemployed or low
income individuals or the type of peoples who possess no other means for gaining financial
services (Mutesasira and Wright, 2001). The ultimate purpose of these banks is to provide
financial support to the low income people and assist them by providing an opportunity to
become self- sufficient by the various means of saving money, borrowing money and insurance.
Micro Finance even certainly plays an important role in providing a safety net and consumption
smoothening. The research is mainly conducted to understand the role of Micro Finance banks in 
alleviating poverty in India. The Global Hunger Index (GHI) Report 2011 ranked India 45th
amongst the various leading countries with the hunger situation (Desai, 2003). To tumble down
these figure government is launching certain programs which may eradicate the poverty and
satisfy the needs of needy by quenching their thirst and satisfy their hunger. The development of
Micro Finance Banks is one of the forward looking steps towards the development of poor
people by reducing poverty in the fields of income, employment, education and housing. This
step of the government is leaving behind the footprints of success of microfinance banks by
intensifying the poor’s and make them enable enough to become self dependent and self
esteemed. With the representation by facts and figure the percentage of population below poverty
line is reducing year by year and achieving a new height of development within the country.
Sengupta and Somini (2009) explained that despite of government initiatives, corporate social
responsibilities (CSR) is also initiated as the way of earning virtue from the poor people as this
now-a-days became a good source of marketing their brand and developing a market image of
their brand.
Figure no. 2: Poverty figures of India (from 1973-2000)
1.2 Rationale of study:
The main purpose for conducting such a research is to understand the need of microfinance bank
in alleviating poverty. The government is investing a lot much money in such a plan of running 
Micro Finance Bank to provide a proper help to the poorer and aggravate the conditions of
poor’s and to make them self sufficient to better sustain their life. It’s the responsibility of the
government to understand the needs of every citizen within the national boundary and assist
them as and when required. Hence it is also necessary to know that whether the programs
initiated by the government works efficiently or not and does it properly works in reducing
po