The Backbone of Grassroots Finance: A Conceptual Study of Microfinance in India

Microfinance is playing a very important role in the development of India. Microfinance is a very significant source of financial services for the poor people and small and medium enterprises that do not have easy access to banking and related services. Microfinance is the form of a broad range of financial services such as deposits, loans, payment services, savings, microcredit, etc. Microfinance in India has emerged as a significant tool for poverty reduction, empowering low-income individuals, particularly women. Micro financial instruments are very important for the economic development of India because 70 percent of its population lives in rural areas and 60 percent depends on agriculture (according to World Bank reports).