ROLE OF MICRO FINANCIAL INSTITUTIONS IN INDIA

Indian economy is a developing economy. Micro Finance programmes play very significant role for boosting
entrepreneurial activities for creating productive assets coupled with employment generation. Government spends
crores of rupees through various financing schemes to boost Indian economy. Indian Population is characterized
with low standard of living , inequality, low income and illiteracy. To boost Indian Economy and Entrepreneurial
skills Government has came up with Micro finance schemes through various institutions for Entrepreneurial Growth
and Development. However lack of awareness of Micro Finance schemes among the major portion of Indian
Population has led to slow growth in development of Industries, Agriculture, Trade and other related activities. To
achieve the socio economic objective and making formal banking sector accessible to poor people various micro
finance schemes has been introduced by Government. These schemes puts credit, savings and other financial services
within the reach of poor people. This paper deals with role of Micro finance in India and its models.