Micro Finance: A Tool Towards Anti Poverty Alleviation for Rural India

In country like India, microfinance has been viewed as a tool of development which would alleviate poverty and enhance the growth of the country through financial inclusion.  One of the greatest challenges before the Indian sub- continent which accommodates more than one-third of the population is poverty. Microfinance may be defined as an umbrella under which financial services including micro credit are provided to the low income group. India is the second largest country in the world from population point of view and around seventy percent of its population live in rural areas. Sixty percent of people depend on a single source of income i.e. agriculture.  It is not enough to provide food to more than one individual. The present paper will focus on the conceptual framework of microfinance institutions in India, challenges and opportunities of micro finance activities in rural areas of our country,types of microfinance institutions, benefits extended by microfinance institutions, problems of microfinance institutions and future prospects of microfinance institutions in India..