TO SHOWCASE THE EFFECTS OF MICROFINANCE IN ACHIEVING FINANCIAL INCLUSION IN INDIA.

The present paper highlights the microfinance and role of microfinance in achieving financial inclusion in Indian Economy. The concept of Micro Finance is not new in India. Traditionally people have saved with and taken small loans from individuals and groups within the context of self help to start businesses or farming ventures. Majority of poor are excluded from financial services. Microfinance is a programme to support the poor rural people to pay its debts and maintain social and economic status in the villages. Microfinance is an important tool for improving the standard of living of poor. In spite of many organizations of microfinance, microfinance is not sufficient in india.The potential of growing microfinance institution in India is very high., as it is supported by government of India to achieve greater financial inclusion and growth in the country?s priority sector. The study explores problems in microfinance sector and suggestions to make microfinance more effective in Indian economy to benefit major section of society and to achieve greater Financial Inclusion with the help of Microfinance Institutions.