Volume : 2, Issue : 2, February - 2013

The Role of Micro Finance Institutions in Economic Development and Problems of Micro Finance Lending in Global Era

Dr. Bhavini Pandya

Abstract :

Micro finance is providing the facility of financial services such as deposits, loans, payment services, money transfers and insurance to low income group and poor portions and their Tiny and small enterprises. It is an effective tool for making the banking services accessible to the rural community, where facility of banking is is not easily available to all these people. Improved access and efficient provision of saving, credit and insurance facilities would enable the poor to set up economic assets, manage the risks batter and enhance income earning capacity and resultantly improve their standard of living. Micro finance refers to the provision of financial services to low–income persons though who are consumers and / or self–employed. The resilience of the global micro finance industry are putting the test by the economic crisis is far from being insulated. From the economic mainstream as traditionally thought, micro finance could face a fall in growth and funding because of the global recession and declining investor confidence.