Microfinance in India – Bridging the divide

Microfinance has been defined as the provision of financial services to low-income population for whom traditional banking services are not accessible. Microfinance has proved as a reliable vehicle in alleviating poverty by providing credit facility especially in the rural and semi-urban areas. Microfinance has been described as ‘philanthropy through industry’ on account of its social dimension and has anecdotally helped the poor better their lives by kick-starting economic activity and increasing their income es faced by the microfinance industry in India.