Problems and prospects of micro finance in India

Micro finance is emerging globally as an important financial activity to help alternative the financial needs of economically vulnerable people. Micro finance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers and insurance products-to the poor and low income households, for their micro enterprises and small businesses, to enable them to raise their income levels and improve their living standards. The purpose of this paper is to bring practical guidance to micro finances in adopting the housing programme, in addition to their existing line of micro-finance services. This paper briefly outlines the problems and challenges faced by Micro finances in providing the funds to the poor people. The paper finds that Micro finances ensure financial services to poor people is best done by expanding the number of financial institutions available to them, as well as by strengthening the capacity of those institutions.Micro finance is considered as a tool for socio-economic development.