Current scenario of microfinance industry in India

The present paper highlights the microfinance & evaluates the position of micro-finance. The concept of microfinance is not new in India. Traditionally, people have saved with and taken small loans from individuals and groups within the context of self-help to start businesses or farming ventures. Majority of poor are excluded from financial services. Microfinance is a programme to support the poor rural people to pay its debt and maintain social and economic status in the villages. Microfinance is an important tool for improving the standard of living of poor. Inspite of many organizations of microfinance, microfinance is not sufficient in India. The study explores some suggestions to make microfinance more effective. The potential for growing micro finance institutions in India is very high. Microfinance market in India is expected to grow rapidly, supported by government of India’s initiatives to achieve greater financial inclusion, and growth in the country’s unorganized but priority sector. Microfinance has evolved rapidly into a global movement dedicated to providing access to a range of financial services to poor and nearpoor households. Major Cross-section can have benefit if this sector will grow in its fastest pace. On the basis of growth and evolution related to microfinance, the study predicts the new agenda for future. The microfinance industry being very small in terms of value added to the Indian financial sector. It examines the experience, of India, which has one of the largest microfinance sectors in the world. Globally, over a billion poor people are still without access to formal financial services. Some 200 million of these people live in India. The Indian Government should find an avenue for creation of awareness on how microfinance can benefit from loans and monitors closely to ensure disbursement of loans and grants to entrepreneurs.

Author: 
Dr. Alka Mittal
Journal Name: 
Int J Inf Res Rev
Volume No: 
03
Issue No: 
08
Year: 
2016
Paper Number: 
1236
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Editorial Board

David Johnson
Jessica Parker
Sarah Conor
John Franklin