EXPERIENCE WITH MICROFINANCE IN INDIA

FINANCIAL INCLUSION is concept that defines that the individuals or firms have access to financial services but that does not mean facility of finance at any cost. The term finance inclusion can be understood by 4 factors viz. Access to financial services (in terms of physical proximity and affordability), quality of financial services (products match the needs of customers),usage of financial services (including regularity and frequency of use) and welfare effect of finance services in terms of consumption and productivity. Many Failures with respect to microfinance and other modes of financial inclusion have posed challenge for the governments. The present paper reviews the role and effect of financial inclusion in form of Micro finance in India in last couple of years.