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Mainstreaming the Marginalized through Microfinance
With the vast expansion of formal credit system in India post –Independence era, the dependence of rural poor people on money lenders still continues especially for some emergent circumstances. The dependence on moneylenders is more significant in case of Marginal farmers, land less laborers, small business man and rural artisans. Belonging to the social and economic backward classes and tribal population who remain excluded from the mainstream economy due to some inherent weakness in assets and infrastructure. The credit flow to this segment of marginalized population is not institutionalized. The major difficulty in catering to the credit needs of large number of small borrowers more frequency add to the risk perception and transaction cost becoming reasonably high.
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