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Research Paper | Finance | India | Volume 9 Issue 6, June 2020

Micro Finance a Key Ingredient in Promoting Micro Entrepreneurship in Uttarakhand: A Case Study

Dr. Prakash Garia

Abstract: India is a country that is inhabited by different peoples reflecting lost of diversity in religion, customs and tradition. This variation is also shown in its physical existence, in the north we see Great Himalayas, in the south the coastal plains, in the west the Thar Desert and in the east the lush green forest. Regional disparities have become one of the most important glaring and growing problems not only in developing countries bust also in the most advanced countries of world. If we turn the pages of the history than we will come to the conclusion that after 5 decades of independence India is facing the challenge of maintaining its economic growth and the problem regional disparities is increasing at an alarming rate in the form of movements, regionalism, social unrest which is dangers for the unity and progress of country. The regional imbalances and disparities prevailing in different parts of India have immensely affected the Indian federalism and as a result of this there have been several demands and movements for the creation of smaller states. In this regime, Uttarakhand state which was carved out of the state of Uttar Pradesh on 9 November 2000. It is divided into two broad regions Garhwal and Kumaon. The state comprised of 13 districts namely, Chamoli, Pauri, Tehri, Uttarkashi, Dehradun, Haridwar, Rudraprayag, Nainital, Almora, Pithoragarh, Udham Sing Nagar, Champawat, and Bageshwar. Nainaital, Haridwar, Dehradun & Udham Singh Nagar have large area in the plains, whereas the other nine districts comprise of the hill region of the state. Uttarakhand in spite of being a small state, has certain key features that makes it distinct from other states of country and highlights its potential for development. Micro Credit is defined as provision of loan disbursement from financial instructional of very small amount to the poor in rural, semi-urban, and urban areas for enabling them to raise their income level and improve living standards. There are two core models for microfinance India. In the first model, the self help group model in which a group of about a dozen of women in a village pool their savings and practice in-group lending. After several months of managing and disbursing their money, they are eligible for a bank loan of up to four times of that amount. The second model is bank loan money through multi-finance institutions, usually non-government organizations (NGO) with a track record of rural development work. Just after separation from Uttarpradesh in year 2000, many Ngos started their operations in Uttarakhand. In this paper, we are only concentrating on second model of micro finance because this is viable and feasible and have deep penetrating power to reach to its end clients. For the study we have taken Pahal Institute of Community Empowerment & Micro finance, Kathgodam, Naninital, Uttarakhand so that useful results can be drawn and these results are equally applicable in whole of Uttrarakhand.

Keywords: MFI, Monetary Financial Institution, SIDBI, Small Industries Development Bank of India, NAMBARD, National Bank for Agriculture and Rural Development, NGO, Non Governmental Organization, SGHs, Self Help Group

Edition: Volume 9 Issue 6, June 2020,

Pages: 1047 - 1051

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