Uma Narang

Micro Finance in India Uma Narang

The book provides in depth information about the micro finance, its need, history, features, models, main players, and its importance. One of the key roles of micro finance is to provide financial services to the poor, who are neglected by the formal banking sector. Because banks tend to be found in urban areas and majority of the poor live in rural areas where financial services are not provided. Therefore, MFIs are there to reach the rural poor. Appropriate loan sizes for clients matching their needs, realistic interest rates, savings as a prerequisite, regular, short and immediate repayment periods can contribute to sustainability. If these measures to achieve sustainability are put in place, while focusing on the needs of the poorest, then both the social and financial objectives can be achieved.