MICRO FINANCE: Rural financial Inclusion by Banking Sector in India

Authors

  • Dr. M. Geeta , Dr. C. Naga Sivanand

Abstract

Micro finance and rural inclusion through banking sector is the emerging topic in Indian Financial system. Micro finance refers to providing finance to lower income groups, those who cannot access directly the traditional banking services. This concept was started in Bangladesh by Mr. Muhammad Yunus a noble prize winner in the form of grameen bank. The idea is to provide extremely poor people with small loans so they can start and operate a business. The borrowers are able to save money and pay back the loan over time. The idea behind microfinance is to empower borrowers by helping them build a business which can create income and grow. This study is mainly to analyze the credit flow from different sectors of Indian Financial system, and measure the progress of Financial inclusion in years 2017,2018,&2019.Despite of huge institutional credit  still there is a gap between lenders and borrowers. The present study is to find out the reasons and challenges for the Micro finance institutions in providing Micro credit and micro loans. The data is collected from the secondary sources and analysis is done through tabulation and percentages.

Published

2020-12-01

Issue

Section

Articles