Microfinance, Poverty Alleviation and Financial Inclusion of the Poor: Reflections From Andhra Pradesh and Telangana

Having understood the necessity of poverty alleviation alongside financial inclusion through microfinance intervention, this book makes an attempt to fill the knowledge gap in relation to the potential synergies among microfinance, poverty alleviation and financial inclusion. As a part of empirical study, it examines the correlation between poverty alleviation and financial inclusion by thoroughly analyzing the key microfinance models such as SHG-Bank Linkage Program (SBLP) model, Microfinance Institutions (MFI) model and Business Correspondent (BC) Model; and offers some interesting observations, which are quite relevant in the present policy context. It also makes an effort to address one of the fundamental questions as to why the poor, especially women are unabatedly depending upon MFIs, despite the successful functioning of SBLP model in fulfilling the same objective. This book is a reminder of the fact that any effort to achieve complete financial inclusion without alleviating poverty is a futile exercise and financial inclusion would be successful only if financial literacy is vigorously promoted along with poverty alleviation schemes and programs.