*Research Scholar, Sathyabama University, Chennai, India. & Assistant Professor, Department of Commerce & Management, P.A. Arts and Science College, Athur, Chengalpattu-603101, India
**Associate Professor, Sivet, College, Gowrivakkam, Chennai-73, India
This paper analysis about how far the Indian Microfinance Institutions act as an interface between the formal credit delivery systems and credit seekers, with an aim to assist for the social economic development of poor and marginalized people. MFIs are geographically distributed largely in Southern States of India. It accounts for more 85%. Even after more than 2 decades of MFIs involvement in this sector unable to remove the Role of Informal Money lenders (indigenous) in the existing financial services. They seem to be an indispensable in bridging the gaps between formal and informal. The paper highlights deeply the involvement of various sectors in delivering the micro credit. Still two-third of borrowers has accessibility to informal money lenders. The present financial system of our country has miserably failed to bring a social empowerment on the poor in rural India.
