The Microcredit Foundation of India and Poverty in India

1171 Words5 Pages
The Microcredit Foundation of India is a non- profit organization, and effective tool for alleviating poverty. The Microcredit Foundation has its base located in southern rural India. Microcredit works with just about everyone who needs their help; however their focus is women. Microcredit presents the women of rural communities with the opportunity to start a business. The services of micro credit are dedicated to creating a better stable economy, opportunities in the establishment of medium sized enterprises, and co-operative development. The Microcredit Foundation of India provides sufficient and affordable customer oriented funding and other financial services as well as consulting and training to the target groups. Microcredit also provides a means of successful social mobilization and empowerment program to lead the credit delivery, even the poorest of the poor stand to benefit from microfinance.

The mission is to have a system in which regular banks could make cheap loans in farming areas that would usually not possible for non-profit. Microcredit has successfully developed 95 rural branches of the bank. These branches successfully renewed and expanded the business of rural areas. It transformed rural banking into a distinct business activity with profit potential (The Swedish Microcredit Foundation). The interaction and the overlapping of financial activity have been increasing quite well in the for-profit organizations, formal financial sector and have been linked to other banks and business. Out of this overlapping and interaction which is now taking place between the for-profit and non-profit organizations is the reason the there are more opportunities in the rural area today then there were before Microcredit was ar...

... middle of paper ...

...e potential of a person. Grameen believes that all human beings, including the poorest, are endowed with endless potential.

Microcredit has proved time and again that it is access and not interest rates that are a control for the poor. Another discovery followed, that the poor can and will save, and can indeed use a wide range of financial services such as remittances facilities and insurance products. In addition to banks and insurance companies, micro-financing institutions have continued to play an important role in giving credit and saving facilities to micro sectors of the economy. Microfinance is often considered one of the most effective and flexible strategies in the fight against global poverty. It is sustainable and can be implemented on the massive scale necessary to respond to the urgent needs of those living on less than $1 a day, the World’s poorest.

More about The Microcredit Foundation of India and Poverty in India

Open Document