The Performance of Microfinance in Assam: An Analytical Study

Abstract

Microfinance has emerged as a significant tool for financial inclusion, aiming to provide financial services to the economically backward, low income and marginalized section of the society. It is a system under which small amount of loan is provided to the needy poor to enhance their saving habits and improve their living standards, which helps to reduce poverty. In Assam, a state in Northeast India is characterize by its diverse socio- economic landscape and significant rural population, where 32.0 percent population lives in below poverty line which is about 10 points higher than the national level of 21.92 percent in 2011-12 (SHB Assam 2022). The banking infrastructures in the state is also poor than the national level and a large portion of the population remains outside from the banking facilities. So, Microfinance can play a vital role in empowering communities, especially small entrepreneurs, women and the section excluded from the banking system, which helps to alleviate poverty from the state. In this paper an attempt has been made to analyze the performance of microfinance in Assam. This paper is based on secondary data derived from various journals, reports published by NABARD, Statistical Handbook, economic survey etc.