BISWA: Fostering Inclusive Growth through Microfinance (Abridged)

Microfinance, which involves offering a range of financial services to the poor, entails mobilization of savings, extension of small loans, micro-insurance, and capacity building of the beneficiaries. The loans, usually in the range of Rs.² 5,000 to Rs.20,000, are meant for the vast majority of people in developing countries such as India who had traditionally been considered non-bankable. In the Indian context, most of the microfinance service providers are involved in extending only micro-credit. India, despite having one of most widespread banking infrastructures in the world, had, millions of people who, even in till mid-2010, did not have access to basic banking services such as savings and credit.