Main Article Content
Microfinance is a concept which tries to improve the living condition of poor and unemployed in long term. Microfinance provides financial services to people with no access to capital and commercial banking services. Since 1990s, poverty reduction has taken priority at both national and international development levels. Considering this scenario this paper emphasizes on study of relationship between rural areas of India and microfinance. Recently, Microfinance Institutions have developed much new mechanism to cater to the needs of rural people but still they are partially inefficient on the aspect of their development. MFIs can play a vital role in bridging the gap between demand and supply of financial services which will indirectly help in uplifting the standard of living of rural people only if some of the critical challenges confronting them are addressed. Thus, this
paper describes the relationship between the MFI’s and rural development, the loopholes in operational efficiency and study of multiple challenges affecting proper implementation of microfinance in rural areas. This paper is conceptual in nature and based on secondary data entirely.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.