Analysis of issues on micro credit - The case of two villages in Punjab

Abstract

The paper focuses on micro credit as a policy tool for poverty reduction. The methodology is inductive, based on the micro credit analysis of two villages in the Punjab, and attempts to draw inference about the targeting of the poor, sustainability, and measuring the impact of the programme on the poor. The inferences of the study are that micro credit programmes are expensive because these are being supported by organisations which receive either endowment funds or cheap capital. In order for these programmes to continue, the supply of such funds is essential. Since these are subsidised funds, therefore such programmes need to target clients efficiently and effectively.