The Role of Micro Finance in Rural Indian Economy

The development of the rural economy that is poor and mainly depended on the performance and formation of the MFI's in the country. The world's largest poor population is living in India and the development and the financial needs of their families can be fulfilled by the MFI's only because other financial institutions required loan security or collaterals for the loans and these people do not have these. There are more than 12000 MFI's are present in the world and more than 223 MFI's are in the Indian country who are working in various rural economy sectors and states of the country. According to the Kuznet the inequality in the developing countries are always higher side and in India it is observed that the 55 percent of the total wealth has been owned by the 10 percent people of the country and rest have the others. The pioneer of the Micro Finance in India is Anyonya Co Operative Bank Ltd. Who started in 1889 with the capital of Rs. 79. The MFI's are mainly working in the loans for agriculture development, machinery and equipments of the agriculture services, animal husbandry, handicrafts, trading, local based business and new production activities. Mr. Vaibhav Vitthal Gadhave "The Role of Micro Finance in Rural Indian Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-1 , December 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29769.pdf Paper URL: https://www.ijtsrd.com/economics/development-economics/29769/the-role-of-micro-finance-in-rural-indian-economy/mr-vaibhav-vitthal-gadhave