Published by: Sai Om Publications Sai Om Journal of Commerce & Management A Peer Reviewed National Journal PROSPECTS OF MICROFINANCE IN BHUTAN: A CASE OF

Darla Geog is predominantly agricultural based and most of settlements are in rough terrains and valleys. The farmers practice subsistence integrates farming due to small land holding and lack of resources to invest and market their products. People in this Geog generate incomes from cash crops like cardamom; oranges, potatoes and ginger except those people from Sharphu Cheog generate incomes only from ginger. Being poor, and low income earners, they are not able to access the financial services, especially credit facilities of financial institutions. The reason being that, rural people lack collateral security for the loan they take and are expensive on their part since such facilities are far from their villages. Hence, they lend up in lending credit from local moneylenders and become a victim of loan sharks (high interest rate). So, to bridge the gap between banked and under-banked clients, MFI can play a very crucial role in eradicating the loan shark and achieve inclusive growth. In this geog, there are still a very large segment of rural people who do not have access to savings and credit services from the any financial institutions or corporations. The paper tries to explore the problems and prospects of microfinance institute in this Gewog