This study investigates the role and effectiveness of microfinance institutions (MFIs) in addressing the rural-urban poverty divide in India. While microfinance has been widely promoted as a tool for financial inclusion and poverty alleviation, its impact varies significantly between rural and urban settings due to differences in socio-economic structures, accessibility, and infrastructure. The research adopts a mixed-method approach, combining quantitative data analysis and qualitative field insights from selected regions to assess how MFIs contribute to income generation, financial stability, and empowerment in both contexts. The findings reveal that while MFIs have improved financial access and reduced dependency on informal credit in both rural and urban areas, rural beneficiaries face greater challenges in loan utilization, repayment, and entrepreneurial success. The study highlights the need for region-specific strategies and support mechanisms to enhance the inclusive impact of microfinance programs across India’s diverse socio-economic landscape.
Keywords: Microfinance Institutions (MFIs), Poverty Alleviation, Rural-Urban Divide, Financial Inclusion, Economic Empowerment, Sustainable Development.
Related Post