Role of Microfinance in Eradication of Poverty: An Empirical Analysis from Uttar Pradesh

Abstract

Microfinance sector has grown rapidly over the past few decades. It has become very popular in today's market especially in credit markets as a tool for poverty eradication. However, its impact is being still questioned and it also differs from one area to another. The main aim of this research is to evaluate the role of Microfinance in poverty reduction in Uttar Pradesh. Cross sectional interviewed survey of 180 respondents on stratified random method from both urban and rural areas was done. Annual reports and the sector reports published by regulatory bodies, MFI associations etc. were also used. The study revealed that Microfinance is playing a large role in the poverty reduction. Yet some improvements are to be made.