Micro finance is the key to poverty Eradication. A study of Bihar

Abstract

This study analyses the role of microfinance in the state of Bihar, particularly in the context of poverty alleviation. Microfinance facilitates access to financial services—such as small loans, savings, insurance, etc.—for poor and marginalized sections of society. The study found that, through Self-Help Groups (SHGs) and Microfinance Institutions, there has been an improvement in the income, employment, and financial inclusion of rural households. The findings of the study indicate that microfinance promotes women's empowerment, entrepreneurial development, and social participation. However, challenges such as pressure regarding loan repayment, limited skills, and a lack of market access also persist. Therefore, it is essential to implement microfinance initiatives with effective policy support.