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 minium contribu-
tion 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.