Access to microfinance for poverty reductions: A comparative model for achieving MDGS

Poverty in India has been the focus of many debates and policies for decades. Poverty could be defined in so many ways. It is one such phenomenon which still remains a thorny aspect for many countries. Poor people spend a greater portion of their budgets on food than richer people. As a result poor households and those near the poverty threshold can be particularly vulnerable to increases in food prices. Microfinance addresses the shortage of physical capital amongst the Poor and thus directly affects the creation of Human Capital for the Poor. In this era of corporate social awareness Microfinance not just substantiates the claim of corporate citizenship but it also extends the reach to this marginalized market segment of the society. This paper aims to portray the access of microfinance for poverty reduction. Ample case studies are also provided to substantiate this statement.