Evaluating the Role of Microfinance in Mitigating the Problems of Distress Out-Migrants: A Study in KBK Districts of Orissa

Microfinance is an attempt to improve access to small deposits and small loans for poor households neglected by banks. Microfinance offers the finance discipline a possible avenue to make a significant difference in the lives of millions of poor people. In the context of Orissa, despite its abundant natural and skilled human resources, has been the poorest state in the country with as much as 78% of the population living below the poverty line in the most backward KBK region of the state. An attempt has been made to focus on the role played by the microfinance in mitigating the problems encountered by the distress poor migrants of Bolangir and Kalahandi districts of Orissa through the formation of Self-Help Groups (SHGs), on the basis of both primary and secondary sources of data. The study concludes that Microfinance through SHGs is a viable alternative in involving the community in tackling a crisis originating due to failure of crops or natural calamity.