STUDY ON FACTORS AFFECTING THE ROLE OF MICRO FINANCE IN THE DEVELOPMENT OF STARTUPS IN INDIA

Abstract

For Indian citizens and small enterprises without access to standard banking systems, microfinance is an important source of financial services. For small businesses and independent entrepreneurs, microfinance institutions offer relationship-based banking. They also offer group-based models, in which a number of entrepreneurs apply for loans and other services together. Despite the fact that microfinance firms charge interest on loans, their rates are often lower than those of conventional banks. Many people think that granting access to microfinance will help people overcome poverty and manage their finances better while minimizing risks, despite claims made by some critics that these institutions profit from the money of the poor. Through their provision of financial services to individuals and small enterprises without convenient access to banking services, microfinance organizations play a critical part in India's growth. Small loans from microfinance programs are used by low-income borrowers for a variety of things, including self-employment, housing, consumption, and housing. Microfinance programs give customers access to loans, insurance, and savings choices, as well as marketing networks and training for skill improvement. In order to reduce poverty, microfinance programs must support sustainable livelihoods. The term "financial inclusion" is increasingly frequently used to express the objective of providing financial services to all persons and enterprises, including those who are customarily underserved by traditional banking services. Microcredit has developed into microfinance. Purpose: To study the Concept of Micro finance India To study the role of Micro finance In India Approach/Methodology: The reports of the Role of Microfinance in India serve as the study's primary and secondary data sources. This chapter's goal is to detail the study's methodology, including the approaches that were employed. Both the study area and the study population are included. Additionally, it specifies the approaches and processes that will be utilised to choose the samples and data gathering methods. Research techniques: Descriptive Analysis Findings: As a component of a dynamic sector. The microfinance industry in India advances quickly, there are now strong hopes for the contribution it will make to the country's economic growth and reduction of poverty. The study focuses primarily on eastern Uttar Pradesh. We took into account the district of Gorakhpur for our investigation. To arrive at the correct conclusion further described in another chapter, the data was compiled from many sources. This study demonstrates the important role that MFIs play in the lives of a sizable portion of their clients and how they support the growth of emerging countries' economies. This will make it easier to comprehend and value the potential contribution that MFIs can make to improving the situation of the underprivileged and the impoverished