The expansion of Microfinance services in several parts of the globe had resulted in financial inclusion of the unserved sections of the society. Prior to these arrangements of lending, this section of the society was left with no option but to borrow from local money lenders charging exorbitant interest rates. Such borrowing had become a hindrance in their journey to economic uplifting.
Micro lending plays a proactive role in providing financial access to this excluded segment, they ensure the crucial “last-mile connectivity”.
The MFI institutions enable the section to:
* Actively participate in the economic activities and thereby resulting in poverty reduction
* Opt as a viable source for availing loan to expand the existing business or for a new venture
* Meet the emergent expenses caused by hospitalization and others
* Promotes the atmosphere of responsibility through the group lending concept.
PricewaterhouseCoopers, a renowned consulting firm had estimated that MFI worth stands at US$ 120 Billion serving an estimated clientele base of 139.9 million across the globe. Women form 80% of the clientele, and 65% are rural dwellers.