Asian Journal of Research in Banking and Finance
Year : 2015, Volume : 5, Issue : 11
First page : ( 59) Last page : ( 67)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2015.00134.0

Status of Micro Finance in Assam: An Analytical Study

Bhattacharyya Plabita

Asst Professor, Department of Economics, D.R College

Online published on 9 November, 2015.

Abstract

Microfinance is the provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban or urban areas for enabling them to raise their income levels and improve living standards (NABARD). It is a system under which small amount of loan is provided to the needy poor people to improve their living standards and enhance their saving habits. In a country like India, where poverty eradication is a key issue of various government policies, microfinance can play an important role in achieving this goal. In the context of Assam also, microfinance is very relevant. Because if we see the poverty estimates of the state and compare with national level, a very miserable picture appears. The percentage of population living below the poverty line in Assam in 2011–12 is 31.98 percent which is about 10 points higher than the all India figure of 21.92 percent. Moreover, banking infrastructures in the state is comparatively poor than the rest of India and a large portion of the population remains outside the banking network. Microfinance can play an important role by providing credit access with no collateral security to these people who are considered as non-bankable. In this paper an attempt has been made to analyse the status of microfinance in Assam. This paper is based on secondary data derived from various reports published by NABARD.

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Keywords

Microfinance, poverty, pverty line, Credit, NABARD.

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