MICRO FINANCE INSTITUTIONS AND THEIR IMPORTANCE IN GROWING ECONOMIC DEVELOPMENT: A STUDY OF RURAL INDIAN ECONOMY

Abstract

In a country like India 70 percent of the population lives in rural areas while the rest of the population i.e. 30 percent resides in urban areas and 60 percent approx. depend on agriculture (according to the World Bank reports. In this rural India with having second largest population needs NGOs like SHG needs cooperative helping hands. Non-Government organization is playing crucial in the economic development of India. Non-Government organization is not confine up to registered organization like big renowned NGOs its includes small level social help group i.e. Self Help Group on village level, local women skilled help group etc. The purpose of this research paper is to identify how microfinance is made available in the rural areas for needy people and also how the microfinance institutions can check or reduce the poverty with the help of providing microfinance. For critical analysis of the research, data has been collected through secondary available sources and comparative analysis has been done for reaching to conclusion.

Keywords

• Microfinance institutions
• microfinance products
• rural finance
• banking system
• microfinance
• poverty alleviation