Acehtsunami

Poor in Urban areas are facing number of problems related to basic necessities such as - lack of shelter, clean air, clean water, proper toilets, electricity, proper nutrition and medical facilities etc. Housing for the poor is scarce and consequently slums are mushrooming everywhere, especially in unsafe locations which are relatively cheap and vulnerable to natural disasters.

In the recent past urban microfinance is becoming important and necessary due to various reasons. The 2007 Revision of World Urbanization Prospects provides the official UN estimates and projections of the urban, rural and city populations of all countries in the world up to 2050. According to the report, thirty per cent of India’s population today is living in urban areas – slightly more than 300 million people. By 2050, 55 per cent of India’s population will be living in urban areas, amounting to 900 million people.

The 74th Constitutional Amendment has given a significant role to Urban Local Bodies (ULBs) in terms of empowerment and expanding their normal functions to include urban poverty alleviation. The poor are generally illiterate and do not have authenticated addresses as well as any collaterals to give as security. Urban poor primarily need microfinance services such as savings, credit (for consumption, housing and livelihood activities), insurance (for social security) and other remittance services.