Financial Performance of Microfinance Institutions in Telangana

Abstract

In India, microfinance is ingrained in the financial system and serves as a means of distributing and gathering modest amounts of money. Numerous unofficial financial intermediaries exist because there are insufficient banking channels in rural and isolated locations. In particular Microfinance has proliferated and is becoming a stand-in for banks. It emphasizes on rural economy and performs as mode of lifting people from the deprived section into the formal financial system, thereby it reduces the leakage ofbogus financial services. Microfinance was first offered to the majority of the impoverished population as a volunteer service. Nowadays, nevertheless, it serves as a market-based means of reducing poverty and promotes economic growth and financial inclusion in India.