Learn about the concept, evolution, regulation, and impact of microfinance in India, a tool for financial inclusion and poverty alleviation. Find out the current status, challenges, and government initiatives for the sector. What is Microfinance? Microfinance refers to the provision of financial services to individuals or groups who lack access to traditional banking and related services. Microfinance is particularly aimed at empowering low-income populations by offering them loans, savings accounts, insurance, and other financial products that can help in poverty alleviation and fostering entrepreneurship. What is Microfinance in India? (Definition, Components & Types) Definition: RBI Definition: The Reserve Bank of India (RBI) defines microfinance as collateral-free loans to households with an annual income of up to Rs. 3 lakh . Broader Definition: Microfinance is the provision of credit and other financial services in very small amounts, targeted at the poor in rural, semi-urban, or urban areas. It aims to raise income levels and improve living standards, acting as a tool for financial ... Microfinance is a banking service primarily aimed at providing financial access to low-income individuals and small businesses that would otherwise be excluded from traditional financial institutions. With the key goal of enabling self-sufficiency, microfinance operations extend beyond mere loans and encompass services like savings, insurance, and financial education. While the benefits of microfinance are profound, the system has also evolved with complexities and challenges, particularly ...
