Can Microfinance Eradicate Poverty In India?

Eradication of poverty in India is just next to impossible.However any financial scheme when executed properly would improve the conditions of rural people.As far as the micro finance companies are concerned their work is more bussiness oriented rather than uplifting the financial condition of poor people.I think rural people need more awarness and informations in order to be benefited by such companies.Poor financial condition is a part of the poverty.To eradicate poverty there are other factors which needs to be worked upon.

Micro finance in perspective does give an opportunity for rural employment to a greater extent since it funds a group of people who are otherwise not eligible to secure loans from banks. But this alone cannot ensure that poverty can be reduced - more than funding as priya had note it requires a lot of education in terms of creating successful business models. If only the government and the micro finance institutions work together and promote it in a much more coordinated way we can see results in the long term

In my opinion microfinance in rural areas by itself cannot eradicate poverty. Credit can be a trigger for growth, but it requires a context of all-round development to function. This must be promoted by the government, the private sector or by the NGOs in really remote regions. Credit will not trigger growth where there is poor governance and insecurity.