Micro Credit for Sustainable Development: Role of NGOs

Microcredit has spread rapidly since its beginning in the late 1970s, but whether and how much it helps the poor is the subject of intense debate. As the history suggests rural credit, poverty alleviation, and micro finance are inextricably interwoven. Any effort to understand one without the reference to other can give fragmented results. The Non-Governmental Organisations (NGOs) are regarded as ‘outside’ actors perceived to work in the interests of the poor, and in the absence of the state, many NGOs have played a vital role in the provision of basic services to the poor. The present paper seeks to delineate the role of NGOs in microfinance and banking inclusion in the remote rural areas.