Microfinance and Its Significance in Economic Development of a Country

Abstract

One of the most important factors in any country's success is inclusive development. The participation of money has grown to be a crucial goal in significant policy reforms as well as a means of bringing economic advantages to our society's underserved and unexplored areas. It is believed that microfinance is a powerful instrument for addressing the issues of unemployment, income inequality, and poverty. With an appropriate adaption of the Grameen model, Microfinance Institutions (MFIs) lending in India got underway in earnest in the middle of the 1990s. Beginning modestly by making small loans to people in disadvantaged economic situations, the sector has come to be recognized for its contribution to inclusive finance and the rise of the bottom of the pyramid. Desire to learn about and comprehend the microfinance trend from 2009 to 2019 for the poor segment of society is another motivation for this study. Numerous papers, research journals, and studies pertaining to various microfinance sector segments were used to gather the data for the study. For the same reason, certain pertinent research studies in the micro finance sector that predominantly focused on the years 2009–2021 have been examined.