Impact of Micro finance in Poverty Eradication via SHGs: A Study of Selected Districts in U.P
India is a country that suffers from extreme poverty conditions. According to World Bank report 2010
around 1.2 billion people in world are below poverty wherein India holds maximum number of poor in
the world. Several rehabilitation schemes have been initiated in the past but any significant impacts have
not been examined so far. Many cooperative banks and regional rural banks are developed to look into
need of poor population in India. Total requisite of micro-credit in the country has been assessed at Rs.
50,000 crore. Poverty reduction has been a major objective for government of India; Micro finance is one
of the paramount tools in all its strategies. India’s micro finance still differs from number of Micro
finance institutions in comparison to other economy. However micro financing initiated by National
Agriculture Bank for Rural Development through Self-Help Groups-Bank linkage program produced
impact to a larger extent. The research paper measures the impact of poverty eradication in Mirzapur
and Ghazipur districts of Uttar Pradesh. The study includes all women seekers who have availed Micro
finance once they have joined SHGs. Samples of 109 respondents are collected from above districts
through questionnaire method and random sampling method is used to measure the impact.