~ 427 ~ ISSN Print: 2394-7500 ISSN Online: 2394-5869 Impact Factor: 5.2 IJAR 2020; 6(7): 427-430 www.allresearchjournal.com Received: 23-05-2020 Accepted: 24-06-2020 Dr. Ramesh Kumar Chaturvedi Assistant Professor, Department of Rural Management, Babasaheb Bhimrao Ambedkar Central University, Lucknow, Uttar Pradesh, India Om Prakash Singh Department of Rural Management, Babasaheb Bhimrao Ambedkar Central University, Lucknow, Uttar Pradesh, India Corresponding Author: Dr. Ramesh Kumar Chaturvedi Assistant Professor, Department of Rural Management, Babasaheb Bhimrao Ambedkar Central University, Lucknow, Uttar Pradesh, India Impact of microfinance on living standards of poor people (Special reference of rural area of eastern Uttar Pradesh) Dr. Ramesh Kumar Chaturvedi and Om Prakash Singh Abstract Microfinance is not a new development but started in 1976, by Muhammad Yunus. Whos vision was to come up and have succeeded in reaching the poorest of the poor and improvement of their living stander. To understand the phenomena in this study researchers have focused to understand the impact of MFIs in living stander of rural people. Researchers have used primary as well as secondary data in their study. Sample based on the random sampling technique, from five districts of east Uttar Pradesh. Researchers have interviewed the respondents who are already involved in microfinance activities. From the analysis of data, researchers found that microfinance has the positive impact on the standard of living of the poor people and on their life style. Microfinance has not only helped the poor people to come over the poverty line, but has also helped them to empower themselves. Researchers have developed a theoretical model to understand the impact of MFIs. Keywords: Microfinance rural people. Living stander (education, health care economic status) food security Introduction Microfinance is not a new development but the history of microfinance is four decades old in 1976, founded by Mohammed Yunus. He founded Grameen Bank in Bangladesh and begun accessing Micro Finance services to poor women in South Asia villages. Some developed countries like European countries as well as developing countries particularly Asian countries have a long history of microfinance. Microfinance evolved as a type of the informal banking for used the poor. Informal finance and self-help group have been at the Foundation of microfinance in European countries. The early history of microfinance in Ireland can be traced back to 18 th century. It is a history of how self-help group led to financial innovation, legal backing and conductive regulation, and creating a mass microfinance movement rural population. But the unpleasant rules and regulations prompted by commercial banking brought it down. On 13th October 2006, the Nobel Peace Prize went jointly to Muhammad Yunus and Gramen Bank, the microfinance institution which Muhammad Yunus founded 30 years ago. The man who proved himself to be a global leader who has managed to translate visions into practical action for the benefit of millions of rural people, not only in Bangladesh, but also in many other Countries. The idea of loans without any financial security had appeared to be an impossible for poor people the visionary man, Muhammad Yunus, the founder of Grameen Bank, tells us the goal spread of micro-credit and finance, which give us the hope, for milian of eople “Maybe our great-grandchildren will go to museums to see what poverty was like”. Data indicates that there is huge impact of microfinance on the lives of millions of poor people particularly women. Various research scholars and NGOs are working to take microfinance within the reach of poor and rural population, who are still not benefited by the conventional financial system. Researcher and professionals believed that microfinance is not important for all people but most groups can benefit from this innovative idea. In this research paper, researchers try to present evidence of the important contributions made by microfinance institutions in the eradication of poverty by increasing the income generating activities, empowerment of poor people to access development process such as health facilities and education, and reduction in vulnerability. International Journal of Applied Research 2020; 6(7): 427-430