Micro Credit System as an Alternative Source of Credit for Rural Poor in India – Field based Evidences

  Dr.R.Chinnadurai

According to Reserve Bank of India, we are having 1,32,700 branches of banks in our country by March 2016, an average covering 14000 population per branch (RBI Report), out of it 86425 branches (65.12%) are in rural and semi urban areas. But, this big banking network is unable or reluctant to meet the credit requirement of rural communities, especially the poor and poorest of the poor. With this background, a study was conducted in three states namely Tamil Nadu, Karnataka and Odisha, the field based evidences are presented in this paper. The status analysis of performance level and problems faced for obtaining loans by the poor people with the formal banks and factors attracted towards informal sources of credit have been analysed. A number of parameters related to banking financial services process of the different sources of credit used and opinion were presented in this paper for better understanding of the readers and policy makers.

Keywords- Micro Credit , SHGs

Unique Identification Number - IJEDR1704077
Page Number(s) - 493-498
Pubished in - Volume 5 | Issue 4 | November 2017
DOI (Digital Object Identifier) -    http://doi.one/10.8/ijedr.17498
Publisher - IJEDR (ISSN - 2321-9939)

  Dr.R.Chinnadurai,   "Micro Credit System as an Alternative Source of Credit for Rural Poor in India – Field based Evidences", International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.5, Issue 4, pp.493-498, November 2017, Available at :http://www.ijedr.org/papers/IJEDR1704077.pdf