The Holistic Metamorphosis of Rural Lives Through Microfinance: A Perspective

The Holistic Metamorphosis of Rural Lives Through Microfinance: A Perspective

Copyright: © 2023 |Pages: 17
DOI: 10.4018/978-1-6684-5647-7.ch007
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Abstract

Microfinance has been associated with playing a radical role in transforming any economy, especially where the goals are to uplift the disadvantaged sectors. It is also considered to be an important tool for helping poor people in order to fulfil their basic needs. It has got an immense capability to safeguard the vulnerable by its ripple effects from certain financial risks and poverty. Some call it a “poverty vaccine” for people living in rural areas. It also aims at assisting the various communities, economically as well as the socially excluded, focus on asset creation as well as for creating source of income. The holistic metamorphosis of rural lives is possible through the microcredit interventions, and the instances are plenty. In this pandemic, where the economies are facing huge economic crises, the rural vulnerable and the excluded sections have suffered the most. In this phase of transformation, the microfinance intervention with re-oriented objectives can again prove to be an effective tool for reviving the economy as a whole.
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Background

There are certain peculiarities of every rural community therefore the tools for the development of rural communities are always somewhat different from other demographics. As per the encyclopedic entry of National Geographic the rural area is defined as; “A rural area is an open swath of land that has few homes or other buildings, and not very many people”. Further the density of rural areas in terms of population is also very low. Most of the rural communities are smaller in size and the density of population is comparatively less than the urban population. Rural communities most of the time shows homogeneity of language, culture (Asante et al.,2005), traditions, ways of living and customs etc. Rural communities are known for living near the nature and following sustainable living practices (National Geographic Encyclopedia). In most parts of the world the rural communities do not have access to fast communication and they generally rely on agriculture and allied activities. Rural community has been defined as an area which is not fully developed and not civilized. Rural community is defined to be that the geographic area which is located outside towns and cities thereby not having access to modern amenities of life fully. Agriculture is the primary source of living in the rural areas. The rural communities are also associated with activities which are close to nature. In west rural areas are also regarded as country because of the reason that residents are close to wildlife and natural resources of the country.

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