Micro finance – The empowering tool for poor

Over the years, microfinance has surfaced as a powerful tool & model for empowering the poor. Poor people often have just hand to mouth existence and have few reserves for major expenses such as illness, weddings, house repairs or education. Micro finance is the supply of loans, savings, and other basic financial services to the poor. The idea of micro finance was developed as a survival strategy for the poor. Micro credit provides poor people with access to small loans at more manageable interest rates, who wish to start or expand their small businesses, build assets, stabilize consumption and can lead to self-sufficiency and poverty alleviation. It is helping millions of poor people, especially poor rural women. Micro financing has been revolutionizing the rural economy through the self-help groups. There are over 7000 micro finance institutions worldwide, serving over 16 million poor people. This paper tries to find out the scope of Microfinance business in India. The paper analyses the business policy adopted by SKS Microfinance Ltd and strategies adopted to empower the poor.