Financial Inclusion through Micro Finance in India (KEY IJP************697)

• Dwarika Dhish Pandey

Abstract

This research paper aims to explore the role of microfinance in promoting financial inclusion, poverty alleviation, and economic development. Through a comprehensive review of existing literature and an empirical analysis of relevant data, the study will assess the effectiveness of microfinance initiatives in providing access to financial services for the underserved and marginalised populations. Financial inclusion plays a vital role in driving social and economic advancement in developing nations. At the micro level, it enables impoverished households and small businesses to generate income, accumulate assets, maintain stable consumption patterns, and effectively manage risks. Moreover, an inclusive financial system empowers governments to execute social policies more efficiently in critical areas like education and healthcare by enabling targeted financial transfers. In rural India, women from impoverished backgrounds face limited access to institutional credit due to the high administrative costs and lending risks associated with small loans. To address this issue, microfinance has been adopted as a solution. The research will also examine the socio-economic outcomes of microfinance interventions and their potential to empower individuals and communities in low-income regions This study also aims to analyse the role of microfinance in fostering financial inclusion within this context.