From Traditional Financing to Micro Financing: Theory, Experience and Practice with Special Reference to India

Micro financing as a powerful emerging tool of poverty alleviation and rural development has become a buzzword throughout the globe. Learning from the international experiences in the field of micro financing, India has also been moving from traditional conservative approaches of financing to more liberal and sustainable approach of financing to the poor i.e. micro financing. The present paper highlights the concept and worldwide experiences of microfinance. The paper, in particular, brings about understanding of micro finance practices being followed in India. To achieve the purpose, the review of relevant literature and some sources of secondary information have been used.