How Does Microfinance Help Achieve National Goals?

 


According to this CNN report, about 60% of India’s 1.3 billion people live on less than $3.10 a day. That’s as low as INR 250 a day. Almost half of this population is women.

They struggle with a myriad of challenges. These range from trying to live with dignity, to scarcity of resources to meet medical expenses, and even their basic daily needs.

This is where microlending or microfinance comes into play. It helps to stabilize their earnings, plays a role in their prosperity, and helps in habitat development.

This blog talks about how microfinance works and its importance in helping women from poor households break the cycle of prosperity and fulfill their ambitions.

How does microfinance work?

Before we talk about how microfinance has a tremendous impact on the living conditions of women including their habitat improvement, let’s understand how it works.

Microlending is a service directed at unemployed people or those from low-income households who otherwise would have no access to finances. The main objective of these loans is to help the beneficiaries increase their income. Here are some things that you need to know before applying for microfinance:

  • The loans under microlending are not provided against any collateral.
  • The loan amount that can be availed has a small ticket size. It may range anywhere between INR 20,000- 30,000.
  • These loans are usually given for short periods.

    Read More: How Does Microfinance Help Achieve National Goals?

Comments

Post a Comment

Popular posts from this blog

The Importance of Sustainable Housing in Empowering Vulnerable Communities

Image
  Sustainable housing and climate resilience, particularly for vulnerable communities, are among the most pressing and linked issues in the mosaic of global challenges. Defining Sustainable Housing Making dwellings that prioritize energy efficiency, environmental responsibility, and occupant well-being is known as sustainable housing. While maximizing societal advantages, it seeks to reduce harmful environmental effects. This method creates livable and resilient homes that contribute to a brighter future by considering elements like energy use, resource conservation, and indoor air quality. Its importance becomes more apparent when the needs of marginalized groups are taken into account. This blog explores the complex web of significance that sustainable housing creates, highlighting five essential aspects:  climate resilience and energy-efficient livelihoods , the invention of cool roofs, the safety of climate insurance, and the fight against heat stress. Understanding Vulner...
Read more

Empowering Local Communities: Building Resilience to Climate Change

Image
  A concerted effort is needed at all levels to address the critical global issue of climate change. Local communities play a crucial role in building resilience to climate change. By empowering communities with knowledge, resources, and support, we can help them adapt to the impacts of a changing climate and create sustainable and resilient livelihoods. In this blog post, we will explore the key steps to empower local communities in building climate resilience, focusing on energy-efficient livelihoods, cool roofs, sustainable housing, climate insurance, and combating heat stress. Understanding Climate Change Resilience: Climate resilience refers to a community’s ability to withstand and recover from the impacts of climate change. Rising temperatures, extreme weather events, and sea-level rise pose significant threats to communities worldwide. According to the Intergovernmental Panel on Climate Change (IPCC), the world has already warmed by 1 degree Celsius above pre-industrial lev...
Read more

Empowering Women: The Key to Sustainable Development in India

Image
  Introduction   As the world strives toward achieving the  Sustainable Development Goals (SDGs) set by the United Nations, the empowerment of women emerges as a crucial component in creating a fairer, more resilient society. In India, where rapid urbanization and social disparities coexist, advancing women empowerment  is essential for the country’s sustainable development. This approach not only benefits women but also strengthens entire communities, driving improvements across health, education, economic stability, and environmental resilience.   The Connection Between Women’s Empowerment and Sustainable Development Goals   Sustainable development goals emphasize gender equality as a universal aim for social progress. Specifically, SDG 5  focuses on achieving gender equality and empowering women and girls. The importance of this goal extends beyond gender parity; it influences other key areas, such as poverty reduction, quality education, and climat...
Read more