Microfinance as a Tool for Financial Inclusion in Rural Areas of National Capital Region
Keywords:
Financial inclusion, MicrofinanceAbstract
India tagged as a low income class country by World Bank and houses the second largest world population. Out of the total population which resides in India more than 50% of the population is still living in rural area and therefore need credit and financial services. Due to unavailable and improper reach of formal financial services, the rural low income population resort to money lenders for immediate availability of credit as money lenders have been viewed as a tool which provides immediate credit for essential needs. As money lenders give credit immediately, they charge exorbitant prices. This in turn could lead to a debt trap. In this context, Microfinance has emerged as a powerful effective mechanism tool for poverty alleviation, empowerment and financial inclusion in India. The present study is descriptive in nature and entirely based on primary and secondary data. It also dwells upon the role of microfinance as a tool for financial inclusion in rural areas and to identify the opportunities and challenges associated with the growth of microfinance sector in realising financial inclusion in rural areas of NCR.
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