Microfinance-the way of Financial Inclusion

Globally there are over 2.5 billion people who are excluded or underserved by financial systems. These are often poor or underserved populations who lead complex financial lives and typically rely on mix of informal and formal financial services with neither fully meeting their diverse financial needs. To provide hassle free and affordable financial products in rural segment is a primary issue for the banking system. This gap is bridged by the microfinance with providing broad range of the financial services to poor and low-income households as significant potential contributor in the government's agenda of ‘Financial Inclusion’. The present paper deals with how microfinance helps to the nation to alleviate the poverty or contributing for economic progress.