Question

Changes brought by microfinance in india

Answer 1

“Microcredit, or microfinance, is banking the unbankables, bringing credit, savings and other essential
financial services within the reach of millions of people who are too poor to be served by regular banks, in
most cases because they are unable to offer sufficient collateral. In general, banks are for people with money,
not for people without.” (Gert van Maanen,2004). Much has changed in India since the early credit strategies. The rural economy has diversified, the cash
economy has expanded, the service sector has developed, and mobility has increased. These changes have
gained speed in the past decade, and with those changes come opportunities to re-think financial sector
interventions, including new ways of thinking about how the poor use financial services and which kinds of
services they require.