Analysis of Microfinance sector in India

Abstract

India is second largely populated and seventh largest economy in world. As said by IMF recently that India can be fifth in the race of Largest Economy in the World. To achieve this position, India should be having balanced economic growth and development. Major obstacle which affects overall economic development is selected or marginal class of people who are the poor and not having enough availability finance resulting into instable economic development. Due to lack of finance they do not have enough options for income generation activities, upliftment in standard of living etc. Micro finance proved to be a big Triumph card for India for balanced economic and financial growth with social upliftment of underserved people of India by commercial banks. Microfinance provides various facilities like micro credit, micro insurance, micro pension training for skill development and many more. Microfinance in India is provided by many delivery models which covers each and every poor all over India. This paper analyse the overall overview of microfinance in India and by comparing growth rates of past three years.