Micro Finance in India

Microfinance is the provision of financial services to low-income individuals or micro-entrepreneurs who lack access to traditional banking services.

In India, the development of microfinance began in the 1970s and 1980s when NGOs and community-based organizations started experimenting with microcredit programs. 

                                   The Reserve Bank of India began to regulate microfinance institutions (MFIs) in the 1990s, leading to the growth of MFIs and the establishment of new ones. 

Self-Help Groups (SHGs) were established in the 1990s and became a key turning point in the development of microfinance in India. Government-sponsored programs such as the Swarnajayanti Gram Swarozgar Yojana (SGSY) and the National Rural Livelihood Mission (NRLM) aimed to promote SHGs and provide them with access to credit and other financial services. 

      The microfinance industry in India has faced some challenges, but overall, it has been a positive force in promoting financial inclusion and supporting the livelihoods of millions of low-income individuals and micro-entrepreneurs.