EFFECT OF MICROFINANCE ON ECONOMIC AND RURAL DEVELOPMENT IN INDIA

Abstract: - Microfinance not only a financial system; rather, it is a vehicle for bringing about social change and eradicating poverty in a nation, particularly among women, who are then better able to achieve self-sufficiency. There are now 82 significant microfinance institutions in India that provide modest loans to assist individuals escape poverty. The conceptual underpinning of microfinance organizations in India is described in this essay. The researcher made an effort to identify how microfinance contributed to the growth of the rural areas. Through the examination of microfinance programmes, an attempt is being made to provide light on the contribution of microfinance to rural development. The study's main finding is that the weaker section of the Indian economy desperately needs ways to obtain credit through money lending. Thus, it is crucial to focus on the needs of the poor and raise their living standards since doing so promotes economic growth