Authors: Mr. Sitansu Ranjan Swain, Mr. Vijaya Rudraraju, Ms. Sasmita Nayak
Abstract: This study examines the role of Microfinance Institutions (MFIs) in poverty alleviation and economic development by extending financial services to financially excluded and underserved populations. MFIs improve access to credit and financial inclusion, thereby promoting micro-entrepreneurship, income diversification, and sustainable livelihood generation. The study employs a quantitative research design based on SHG members from Khurda and Sambalpur districts, analysing key socioeconomic indicators such as income level, household decision-making autonomy, and quality of life. Findings reveal that microfinance enhances financial empowerment, intra-household bargaining power, and community participation, particularly through SHG engagement and income-generating activities. Overall, MFIs play a crucial role in poverty reduction and women’s empowerment, influenced by factors such as institutional efficiency, interest rate structures, and regulatory frameworks governing financial inclusion mechanisms.
DOI: https://doi.org/10.5281/zenodo.19643812
