Role of Micro-Finance in India- A Conceptual Study

Abstract

Micro-finance plays an important role in rendering financial services to financially and economically backward people. It has many social as well as economic implications such as curtailment of poverty, improvement in standard of living, financial literacy, women empowerment and economic growth of the nation. Micro-finance not only provides microcredit but also various services like deposits, insurance, money transfer, payment services, saving, etc. In a developing country like India where a large portion of the population is living below poverty and a large number of people are unable to get access to traditional banking services, the importance of microfinance cannot be undetermined. With the aim of developing financial inclusion and equality, the idea of micro-finance acts as an alternative source to provide loans to poor people. This research paper is based on secondary data which discusses the concept of micro-finance and also focuses on identifying the current scenario and the role of micro-finance in the growth and development of India.