Role of Microfinance in alleviation of Poverty: Literature review

This paper covers both the theoretical and empirical literature on microfinance poverty and their relevance to poverty reduction and economic empowerment. It begins with a brief review of the historical background of Microfinance in the context of poverty reduction all over the country and particularly in Uttarakhand. It then reviews the methods of operation of Microfinance Institutions, empirical studies on the impact of Microfinance on poverty reduction and economic empowernment. The experience of microfinance in different states and how it has helped to alleviate poverty in these states are also reviewed. The roles, performance and successes of microfinance institutions in alleviating poverty are also enunciated in this section. This section also discusses various challenges confronting Microfinance Institutions.