Socio economic impact of microfinance on rural livelihood in Jalandhar district

Development alone cannot bring peace and prosperity unless social justice and equality are ensured. The rural poor, with the intermediation of voluntary organizations join together for self-help to secure better economic growth. This has resulted in the formation of a large number of self-help groups in the country, which mobilize savings and recycle the resources generated among the members. SHG's are necessary to overcome exploitation, create confidence for the economic self reliance of the rural poor, particularly among women who are mostly invisible in the social structure. These groups enable them to come together for a common objective and gain strength from each other to deal with exploitation, which they are facing, in several forms. A group becomes the basis for action and change. Significantly, credit is a major factor in boosting economic development if it is effectively utilized. In the present paper an attempt have been made to analyze the socio-economic impact of microfinance on rural livelihood.For the analysis of data factor analysis have been used. The upliftment of social and economic status can be analyzed by using five different factors that include economic upliftment, social emancipation, selfrealization, commercial opportunities and awareness. Microfinance can be used an effective tool for improving the rural livelihood but need of the hour is sustainability of the micro financial programmes in the country.