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Micro Finance through Self Help Groups – A Survey of Recent Literature in India

In the development paradigm, micro-finance has evolved as a need-based programme for empowerment and alleviation of poverty to the so far neglected target groups (women, poor, deprived etc.) and micro-finance has become one of the most effective interventions for economic empowerment of the poor. The experience across India and other countries has shown a robust potential of Microfinance to integrate with the development issues thereby significantly impacting the lives of poor. This paper critically reviews the various empirical studies carried out in India and it will help the researchers in the field of SHG and microfinance. Though the literature available is fairly large, the review is limited to the 53 major studies carried out in India to identify the major trends. Studies carried out in India, as evident from this paper, indicates that micro finance and Self Help groups, by and large contributed to the development of core poor in terms of economic well being, alleviating poverty and empowerment leading to over all development of rural poor.