A Study of Awareness of Microfinance Schemes in Urban Slums in Pune

  • Vivek Yadav, Dr. Rashmy Moray


Microfinance can easily be explained or quoted as a provision which encompasses a far-reaching dimension of services which are financial in essence such as insurance for the destitute, households with low income, loans, payment services, money transfers, deposits etc. This arrangement can also envelop enterprises and small businesses owned by them. Microfinance quintessentially is a very potent and compelling apparatus to ensure that finance is accessible to the unbanked space in the bucolic as well the avantgarde burghal slums. The destitute shall be bystander to the ameliorated living standards, enhanced earning capacity, asset formulation which will lead to improved quality of life with enhanced awareness and avenues of improved provisions of savings, insurance and credit facilities

                 Over the last few decades India has been witness to breakneck urbanisation and the public data is distinctly indicative of an august number of cities having seen a large quantum of population migrating from the rural demography, primarily attributing to scanty vocational opportunities and dilapidated infrastructure. The Oppidan centres have been experiencing spate of migration which has resulted in enlargement of paltry villages on the fringes, and trend is still continual. As an aftermath a very large quantum of public squalor have come up in each one of the developed or imminent city. These slums account for nearly 40 percent of any city’s population and it is corroborated by the public data. Apropos, it can be inferred that Microfinance offers itself as a very compelling apparatus for opportunity creation which can profoundly help the civic poor to alleviate the quality of their lives. Although, numerous approaches have been undertaken to accomplish, which are yet to prove themselves of the results desired. A colossal amount of money has been infused into various such projects, only time shall be a testimony to the pinnacle.  RBI’s and Bank’s envisioned model of business facilitator and correspondent probably need a major overhaul.

                 Microfinance as a programme has indeed come to the rescue of specific target groups which had been neglected so far in the development models such as the deprived, poor, women, rural and urban poor etc. The empowerment of the down-and-out and the concern to alleviate poverty is the underlying basis for the evolution of such programmes. Hence, numerous programs envisaging poverty alleviation by the stratagem makers and development organizations, have envisioned access of credit to the poor. It is noteworthy that such provisions have been promulgated by various SHG, NGO, Govt bodies and has so far attained a significant amount of success in the rural fragments. Apropos, it is imperative to enhance the awareness levels of micro-finance schemes amongst the poor.

                 The awareness of the Microfinance programmes has been the pivot in empowering and educating the destitute in the most propitious manner. This awareness has been incidental in enabling them to move forward towards poverty alleviation with the help of the development funds. Over a period of time certain programmes under the umbrella have attained eminence in the field of development and beyond.  The underlying objective is very crystal – the avenue of financial services to the beggared people shall empower and enable them to mushroom a micro-enterprise which shall avow these people to burst forth.  For attainment of this objective the awareness of these schemes is a must. Thus, it is pertinent to understand the requisites to enhancement of the awareness levels betwixt the urban poor, reasons behind its slow acceptance and commensurate steps required to be undertaken.

 Keywords- Microfinance, Awareness, Urban slums, Policies and Procedures, Potential market, Promotional programmes.