MICRO FINANCING IN INDIA
MICRO FINANCING IN INDIA Micro Finance is a basis of financial services for entrepreneurs and small business deficient in contact with banking and associated services. The two key systems for the recess of financial services to such customers include ‘relationship-based banking’ for individual entrepreneurs and small businesses along with ‘group - based models’ where served entrepreneurs come together to apply for loans and other services as a group. Similar to banking operation traditions, microfinance entities are supposed to charge their lender’s interest on loans. In most cases the so called interest rates are lower than those charged by normal banks, certain rivals of this concept accuse microfinance entities of certain gain by manipulating the poor people’s money. As per the world bank estimates, more than 500 million people have improved their economic conditions via micro-finance related entities. BACKGROUND The term ‘microfinancing’ was first used in the 1970s during the...