TABLE OF CONTENTS

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. RATIONALE OF THE STUDY

4. OBJECTIVES OF THE STUDY

5. RESEARCH METHODOLOGY

6. HYPOTHESIS

7. BIBLIOGRAPHY

INTRODUCTION
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services. More broadly, it is a movement whose object is "a world in which as many poor and nearpoor households as possible have permanent access to an appropriate range of high quality financial services, including no just creditbut also savings, insurance, and fund transfers." Those who promote microfinance generally believe that such access will help poor people out of poverty. Micro finance has become one of the most discussed subjects in the last two decades all over the world. Today micro finance programs and institutions have become increasingly important components of strategies to reduce poverty or promote micro and small enterprise development. It has been approximately 25 years since the birth of Microfinance with the Founding of the Garmin Bank in Bangladesh by Professor Mohammad Yunus. The field has since spread with the adaptation and evolution of Professor Yunus ideas to various countries and contexts. The UN Year of Microcredit in 2005 indicated a turning point for Microfinance as the private sector began to take a more serious interest in what has been considered the domain of NGOs. However, with all the excitement about the prospects of the field to contribute to poverty alleviation and the integration of the worlds poor into the rapidly evolving global market system, the Consultative Group to Assist the Poorest (CGAP) estimates that microfinance probably reaches fewer than 5% of its potential clients access to financial markets is important for poor people. Like all economic agents, low income households and microenterprises can benefit from credit, savings, and insurance services. Such services help to manage risk and to smooth consumption and allow people to take advantage of profitable business opportunities and increase their earnings potential.

An understanding of Indias poverty, economy, and growth helps in making informed statements about the commercialization of microfinance and its impact on microfinance outreach in India. This sets the stage for defining microfinance and analyzing the costs and benefits of a more commercial model of microfinance delivery. A more in-depth look at the countrys financial sector and its regulation provides the context within which Microfinance has evolved and

Outlines its constraints. This section then focuses on providing a summary of the wealth of information on India and the evolution of its financial sector in order to set the context within which to better analyze SHARE, SKS, and BASIX.

SKS Microfinance Limited (SKS) is a non - banking finance company (NBFC) , regulated by the Reserve Bank Of India. SKS claim its mission is to eradicated poverty by providing financial services to the poor. The company operates across these 19 states of India : Andhra Pradesh , Karnataka , Maharashtra , Orissa , Madhya Pradesh , Bihar , Uttar Pradesh Rajasthan Uttaranchal , Himachal Pradesh , Haryana , West Bengal , Jharkhand ,Chhattisgarh , Gujarat , Kerala , Tamil Nadu , Punjab and Delhi.

REVIEW OF LITRATURE

These literatures include books written on the subject by experts and also journals, manuals etc. In fact, there are very few literatures available, regarding socio-economic, political and entrepreneurial development of women. Dr.C.Rangarajan (2006) in his topic Microfinance and its future directions in the introductory part of the book, outline the evolution of SHG through microfinance evolve through in three stages. First, to meet survival requirement need, in the second stage is to meet the subsistence level through investing in tradition activities and in the final stage by setting up of enterprises for sustainable income generation. Robert Peck Christen (2006) in his paper Microfinance and Sustainable International Experience and lesson for India, he articulates the changing general perception of bankers, that SHGs are profitable clients or bank. Lanmdau Mayouxs study (1998) on Participatory Learning for Womens Empowerment in Micro Finance Programs (IDS Bulletin, Vol. 29 No.4, 1998) proposes a participatory approach for integrating womens empowerment concerns into ongoing programs learning, which itself would be a contribution to empowerment. Micro finance programs for women are currently promoted not only as a strategy for poverty alleviation but also for womens empowerment. In the article of G. Buckley (1997) microenterprises in the informal sector in Kenya, Malawi and Ghana. It seeks to provoke critical reflection on the uncritical enthusiasm that lies behind much proselytizing of microfinance for informal sector microenterprise. It questions whether the extensive donor interest in microenterprise finance really addresses the problems of micro entrepreneurs or whether it offers the illusion of a quick fix. It suggests that the real problems are more profound and cannot be tackled solely by capital injections but require fundamental structural changes of the socioeconomic conditions that define informal sector activity and a fuller understanding of the ''psyche'' of informal sector entrepreneurs.

RATIONALE OF THE STUDY

Indias rural poor are overwhelmingly dependent on agriculture as their primary source of income; the majorities are marginal or small farmers, and the poorest households are landless. The financial needs of Indias rural poor reflect the volatile, uncertain and irregular income streams and expenditure patterns of these households. If we talk about Indore, which is also an agricultural sector, most of the people belong to rural region. Many Banks providing Micro financing aimed at empowering women so that they can be able to create their own business. Microfinance industry not only helps them pull themselves out of poverty, but it also promotes gender equity throughout out the world. Microfinance loans helps to create sustain impact by educating recipients on how to create their own business and how to properly manage and grow their money. Microfinance allows the poor to gate the loans they need to save invest and create a sustainable life style of financial independence and growth these loans are used productively by the poor to create there owns business

OBJECTIVES OF THE STUDY

1. To study how micro financing proved to be effective for women. 2. To analyze how microfinance reduce poverty.

RESEARCH METHODOLOGY

SAMPLE SIZE Study will be conducted on 100 respondents through random sampling

DATA COLLECTION The study is based on both Primary data and secondary data. Primary Data includes questionnaire , face to face interview. Secondary data will be collected from the Reports and administrative guidelines of the all above. Apart from these, books, journals, seminar papers, websites, etc. also formed the sources for the collection of secondary data for the study. The necessary primary and secondary data in respect of this study will be also collected from the functionaries at various levels.

HYPOTHESIS OF THE STUDY

1. Microfinance helps in raising standard of living of people.

2. The microfinance services reduce poverty among poor people.

BIBILIOGRAPHY
Dr.C.Rangarajan (2006) in his topic Microfinance and its future directions. Robert Peck Christen (2006) in his paper Microfinance and Sustainable International Experience and lesson for India, Lanmdau Mayouxs study (1998) on Participatory Learning for Womens Empowerment in Micro Finance Programs (IDS Bulletin, Vol. 29 No.4, 1998)

Elahi, K. Q. and C. P. Danopoulos (2004). "Microfinance and third world development: A critical analysis." Journal of Political & Military Sociology 32(1): 61-77.

Asian development Bank (ADB) journal on Microfinance in business today.

WEBLIOGRAPHY www.Microfinance.org www.wikipedia.com www.google.com