Microfinance in India: Issues, Challenges and Opportunities

Abstract

The purpose of the paper is to highlight the issues, challenges and opportunities of microfinance sector in India. Many developmental programs implemented in India, microfinance programs have a strong rural oriented and targeted the poor, especially for women. Numerous challenges are ahead of this sector like lack of accessibility, unhealthy competition, seasonal migration, political unawareness, excluding vulnerable groups, threatening the financial discipline, resource constraints, low level knowledge of microfinance institutions (MFIs) etc. On the other hand, existing in poverty in India, along with opportunities, is paving way for the growth of this sector and offering a huge market potential for microfinance. On this basis the sector presents a lot of opportunities such as: stimulating growth of economy, women empowerment, increasing volume, accessibility and outreach, economics of scope etc.