Abstract:
Microcredit is defined as minor finances given to lesser earning persons who are
away from the conventional banking structure. Microcredit is a portion of the big
microfinance institution that provides credit, along with savings, insurance, and
additional elementary financial facilities to the poor. Different forms of
microcredit services, from ancient time, are found in India e.g. moneylenders,
community lending, loans from friends and relatives, traditional informal groups,
conventional or specialized banks microcredit etc. The desire and intrinsic
competence of poor to get better living standard is intended as the base for
concept of ‘microcredit’. After the success of microcredit in Bangladesh, it is
recognized as an efficient tool for empowerment of economically deprived section
of the society. Generally, the receiver of microcredit is both the urban and rural
families, particularly women SHGs. Credit is given for improving standard of
living, asset making and revenue-generating activities. Government Departments,
Micro Finance Institutions (MFIs), Self-Help Groups (SHGs), Non-Government
Organizations (NGOs) independently recognize the beneficiaries. The repayment
period is usually small. The distinctive benefits are high rate of repayments of
credits and low transaction cost. Lately, microcredit turned into well-known
organised livelihood for monetary services especially for the economically weaker
section. Microcredit is now established as an unconstrained economic system with
numerous variants in MFIs structure. This Study is an attempt to understand the
impact of microcredit facility on enterprises being run by SHGs in rural and suburban areas.
Description:
Fourteenth Biennial Conference on Entrepreneurship/ Edited by Rajeev Sharma, Sunil Shukla, Amit Kumar Dwivedi & Ganapathi Batthini
