A Research Study On Micro Finance

2048 WordsSep 28, 20149 Pages
Micro-finance is a service provided by banks and other financial institutions in which extremely affordable and easy loans are provided to the low-income segment of the country and those people having no source of financing. It is mostly practiced in under-developed and developing countries. Micro-finance ensures that these people have a secure income source for their future. Furthermore Micro-finance serves a dual purpose of: 1. Raising the Employment level 2. Increasing the per-capita income One of the biggest examples of success of microfinance is Bangladesh. However talking about the Indian context of Micro-finance, as a concept it has made its presence felt in India through several prominent MFIs and NGOs and now Banks are also stepping forward. Microfinance has a great scope in creating sustainable economic development in the economically backward areas of India. Work has already been started in promoting micro-finance and making it a provider of credit and banking facilities for those not covered under the purview of the Indian banking system and the associated benefits. However, apart from its primary function of extending the benefit of credit facility to the rural community and economically backward classes, microfinance also has a huge potential in creating community based entrepreneurship with the ability to create significant employment in the communities. OBJECTIVES The presented paper seeks to achieve the following objectives: 1. To understand
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