摘要：The purpose of this study was to understand micro finance in India The main objective of this research paper is analysis to the Microfinance in India as a powerful tool for poverty alleviation. There are many societies, companies, trusts and bodies corporate and such other institutions which are engaged in providing micro finance services to the poor households as a complementary to the banking system. There are two broad approaches that characterize the microfinance sector in India—SHG–bank linkage (SBL) and Microfinance Institutions (MFIs). SBL is a larger model than MFIs in India, contrary to the global practices of other MFIs. Microfinance total loan growth is estimated to have risen by around 30% year on year in fiscal 2012/13 (April-March). The Central Government have felt that since these institutions lack a formal statutory framework for providing such micro finance services, The Micro Finance Institutions (Development and Regulation) Bill, 2012 has passed on 11 February, 2014to provide a statutory framework for the promotion, development, regulation and orderly growth of such Micro Finance Institutions (MFIs) and thereby facilitate financial inclusion.
