• Manisha Kaushal
• Dr. Anoop Pandey

This paper attempts to describe the role of microfinance in the sustainability of start ups in India. Nobel Laureate Muhammad Younus is credited with laying the foundation of the modern MFIs with establishment of Grameen Bank, Bangladesh in 1976. Microfinance sector has shown tremendous growth in the past few decades. The low income group (particularly female) can be benefitted and can start their own small scale businesses with the help of low interest credit program of Microfinance schemes. This programs help in alleviating poverty by spreading financial services to unbanked sections of population, and millions of poor households are served globally. Simultaneously, the Indian Government has gifted the young and creative population with the concept of start ups. The microfinance bridges the gap between the implementation of creative ideas and lack of finances. Microfinance is not just about giving micro credit to the poor rather it is an economic development tool whose objective is to assist poor to work their way out of poverty. It covers a wide range of services like credit, savings, insurance, remittance and also non-financial services like training, counseling etc. Although, still start ups are far behind in getting these benefits and there is huge gap between the MFI(s) and the growth of startups and their sustainability. In describing emerging situation, this paper highlights the factors affecting and maintaining sustainability of these start ups in India. Factor analysis techniques has used to identify the factors required for the role of MFI in the sustainability of startups and to reduce poverty through savings programs of it. Micro insurance should be perceived as a key service in the financial needs package of the people and in conjunction with micro savings and micro credit could go a long way in keeping the vulnerable segment away from the poverty trap and could be an integral component of financial inclusion. The challenge lies in finding the level of flexibility in the credit instrument that could make it match the multiple credit requirements of the low-income borrower without imposing unbearably inflated cost of monitoring its end use upon the lenders.

Keywords:- Innovation, Micro finance, Start ups, Sustainability, Poverty alleviation

"Factors effecting the role of Micro finance in the sustainability of Startups in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.622-637, May-2019, Available :http://www.jetir.org/papers/JETIR1905596.pdf

"Factors effecting the role of Micro finance in the sustainability of Startups in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp622-637, May-2019, Available at : http://www.jetir.org/papers/JETIR1905596.pdf