An Analysis of the Microfinance as a Tool for Economic Growth

Abstract

India is the second most populous country in the world, with a rapidly developing economy that is
widening the gap between rich and poor. Microfinance allows the poor to get loans, and needs to
save, invest and create a sustainable lifestyle of financial independence and growth. These loans are
used productively by the poor to create their own businesses, grow their assets and address poverty
all at once. Microfinance is gathering momentum to become an important force in India. Significant
progress has been made over the past two decades in developing technologies to provide financial
services to the poor in a sustainable way. This loan empowers the poor to start their own businesses,
grow their money, and achieve long-term financial independence. Microfinance is one of the effective
ways for poverty alleviation economic growth and development in emerging countries. This white
paper will focus on the importance, challenges, obstacles, opportunities and outcomes of
microfinance in the Indian context.

Keywords: microfinance, sustainable, challenge, growth, opportunity.