Volume : 5, Issue : 10, October - 2016

ROLE OF MICROFINANCE IN THE GROWTH OF EDUCATION IN INDIA

Anshika

Abstract :

<p> Most poor people are unable to receive the credit. They either lack the sufficient resources to be colleteralised with the banks or rely on the moneylenders who charge exorbitant interest rates. Also formal lending institutions requires a stable source of income so that the borrowers can repay the principal and interest amount in time. Thereby Microfinance Institutions (MFI) helps such people in mobilising their resources, build up the assets and start the entrepreneurship and will in alleviate poverty in India. Education helps making people more productive and earn their livelihoods. Thus education helps in eradicating the poverty. The researches have shown that with every 1 per cent increase in the literacy rate, the life expectancy increases by 2 years. Education thereby helps in the overall development of the people, seek better jobs. Governments of India and various Microfinance Institutions have taken steps for improving literacy skills among the members of the SELF Help Groups. With this these members are now able to read, write, put their signatures and do little bit of arithmetic.</p>