ABSTRACT

Micro credit Programs extend small loans to very poor people for self employment projects that generate income for their survival, allowing them to care for themselves and their families. Microfinance is seen as a key development tool and is now being considered as one of the most important and an effective means for poverty alleviation microfinance schemes are also considered as an effective mechanisms through which the disseminate of precious information on ways to improve the health, education, legal rights, sanitation and other living standards, which are of relevant concerns for the poor. Microfinance has been heralded as the solution to global poverty by optimists in the development field. Many regard the practice of extending unprecedented financial access to the poor through small loans as a necessary and important tool in the development process. The industry has grown and changed shape over the last two decades and recently has come under fire.

Key Words: Microfinance, poverty, financial access, poverty, legal rights and small loans.