2025, Vol. 7, Issue 7, Part B

Author(s): Shweta Jaiswal

Abstract: A significant portion of Bihar's population has been afflicted by severe poverty for decades. Microfinance has shown efficacy in mitigating poverty throughout several regions globally, including India. Numerous trials have been conducted by various microfinance institution models in Bihar to transform the lives of the impoverished and marginalized in the state. These have yielded results throughout the years. This report examines the function of microfinance in the Patna district of Bihar. It aims to elucidate how microfinance has empowered vulnerable and impoverished individuals, enabling them to become self-sufficient and providers via financial assistance. This report offers a critical analysis of microfinance in Patna as a validated approach for the growth and development of the Patna district. Research indicates that microfinance institutions (MFIs) have substantially contributed to enhancing family incomes by offering financing for self-employment initiatives, including livestock raising, agricultural activities, and small enterprises. This has not only enabled families to surpass the poverty threshold but also reduced their reliance on informal moneylenders who impose excessive interest rates. Furthermore, access to financial resources via microfinance institutions has resulted in enhanced asset ownership among low-income families, serving as safeguards during crises and facilitating future investment opportunities.

DOI: 10.33545/27068919.2025.v7.i7b.1595

Pages: 136-139 | Views: 1155 | Downloads: 437

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