Overview of Micro Finance India
Micro Finance India is very important for the underprivileged people in India, who actually account for a large part of its population as well. The financial assistance that they receive through Micro Finance India plays a crucial role in influencing the overall economic scenario of the Indian Territory.
The micro finance companies in India primarily cater to the poor who perhaps need to receive credit more than subsidies. The fact that most of them are not officially employed makes them unworthy of receiving financial help from the various financial institutions like the banks. It has been observed that as a result of such circumstances the poor are almost obliged to take loans from the local lenders, who do not refrain from charging really high interest rates. However ways have been devised to help these people by providing them with loans that are not bound by the rules of conventional mortgages.
Micro Finance and Poverty Relief in India
A significant amount of the underprivileged people in India are somehow able to tailor their financial resources in a way that they can realize their ambitions vis-a-vis their houses or other plans. However with the introduction of micro finance in India, the standard of living of the poor section of the population is expected to improve.
Micro finance services are designed to help the underprivileged to increase their earning, consolidate their properties and even gain a decent financial stability in life. The advantage of availing the micro finance credit over the more traditional means is the unwillingness of the later to serve the underprivileged people.
Major Issues of Indian Micro Finance
Following are some important issues that face the advocates of micro finance in India:
- Existence of the Notion
- Government Policy Issues
- Role of Donor Agencies
- Contextual Interconnections
- Involvement of Communities
- Trends
- Political Issues
- Institutional Issues
- Well Defined Conceptual Foundation
- Need for New Institutions
- Methodological Issues
- Possible Beneficiaries
- Expanse of Operation
- Connectivity Issues
- Location
- Involvement of Corporate Financial Sector
- Possible Leaders