• Priyanka

This study is concern with the a brief explanation of working and problems recently facing by the microfinance institutions (MFIs) in India and to conclude the appropriate suggestions for the smooth working and removing of the problems concerned with microfinance in India. Microfinance is a vibrant field and there is not another best way to provide help to poor and low income group people and hence many delivery models have been developed over a period of time. A large number of the poor and low income group people remain exempted from the help from the formal banking system, in spite of the wide spread of the banking system in rural areas due to which they are not able to get the appropriate opportunities to develop their source of income. Market and the government both are not able to provide the financial help to the poor people. Due to the disappointment of institutional initiatives of rural credit and to the weaknesses of the exploitative banking system of credit gave origin to Microfinance institutions. Uncertainty, microfinance has been successful in providing financial help to the poor and low income group people. But in recent times the role of microfinance has become controversial, with various sections raising objections and criticisms in this regard. On the above findings we observe so many problems are associated with the MFIs. The Microfinance institutions are lagging behind in terms of loan and credit the real needy, regional imbalance, a proper regulation etc. Internal, external and client based challenges are prevailing from starting of the MFIs in India. Finally in my view MFIs in India have so many lacunas in their running, though the MFIs paid an significant role in the poverty alleviation and improving the living standards of the poor. If the above shortcoming will be eliminate from the MFIs, it would have positive results on the economy, lead to greater efficiency and improvement of living standards of the thousands of poor.

Microfinance, credit, poverty

"A STUDY ON WORKING OF MICROFINANCE SECTOR IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 6, page no.259-269, June-2018, Available :http://www.jetir.org/papers/JETIR1806032.pdf

"A STUDY ON WORKING OF MICROFINANCE SECTOR IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 6, page no. pp259-269, June-2018, Available at : http://www.jetir.org/papers/JETIR1806032.pdf