Microfinance in India: A comprehensive overview

Abstract

Microfinance in India has become an important way to fight poverty and improve access to financial services, especially for people in rural, semi-urban, and urban areas who are economically disadvantaged. This study focusses on the current status of Microfinance in India. Microfinance institutions (MFIs) provide small loans, savings, and insurance, focusing mainly on giving small loans to those who need them most. Initially, the government, through programs like NABARD's Self-Help Group Bank Linkage Program (SBLP), played a big role in promoting microfinance. Over time, private organizations also started participating. The Reserve Bank of India (RBI) regulate these institutions to ensure they operate transparently and sustainably.