A Critical Study on the Role of Microfinance in Poverty Alleviation

India is a developing country. Here a large part of inhabitants are poor which is really in an alarming situation. This research work has been conducted to investigate whether micro-finance played a role to alleviate poverty or not. The survey had been done in five districts of Westbengal- Paschim Medinipur, Howrah, Murshidabad, Jalpaiguri and South 24 Parganas. The sample size was 20 non participants of micro-finance and 80 participants of micro-finance. Here SGSY sponsored Self-Help Group has been chosen. The research has been done to judge the impact of micro-finance in poverty alleviation on both aspects- (i) People involving in micro-finance activity and people not associated in micro-finance activity (ii) the economic and social condition of the households before joining Self-Help Group and After Joining Self-Help Group The study has proven that micro-finance has able to alleviate the poverty.