Micro-finance and Socio-economic Transformation: Evidence from Nepal

¿ The poor stay in poor not because they are lazy but because they have no access to capital¿. Milton Friedman, Nobel Prize Winner in Economics (1976) Micro-finance is a unique development in the area of financial inclusion that helps to enhance socioeconomic status of the people through micro-credit and income generation program. The micro-credit is a distinctive innovation of credit delivery technique that provides loans to the marginalized and disadvantaged people under collateral-free group-based lending system. In fact, it is an effective tool of financial inclusion and poverty reduction in developing countries. Micro-finance has become a significant part of development finance to address poverty reduction. Today, micro-finance has become a way of reaching to the poor and marginalized people.