Micro-credit plays an important role in meeting the credit requirements of the poor. Under micro-credit programmes, farmers get adequate credit at cheaper rates. Micro-credit programme promotes thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members which is repayable in small instalments at reasonable interest rates. Micro-credit programme abandons the need of any kind of collateral. It also helps in women empowerment.