Scope of microfinance

Asked by: Guest - 27 Jun 16

I have just completed my 12th standard in commerce stream. While searching through the possible career options, I came across microfinance. Is there any realistic scope in this field?

Our expert said - 09 Jul 16

Microfinance is an alternative source of finance to the lower socio-economic strata. The poor and the needy class who depend on the money lenders who keep charging exhorbitant interest rates from them, can get rid of these money lenders and can have a better reliable option through the microfinance institutions. Microfinance institutions provides loans to the small scale industries.

The scope of microfinance is expected to be fairly good in the near future. With the set of Mudra Bank and Prime Minister's Jan Dhan Yojna, the microfinance institutions have got a flair to spread out. The Mudra Bank are will be funding these microfinance set-ups which were otherwise facing difficulties in raising the funds. These microfinance institutions are expected to be the beneficiaries of bank clients created under the Jan Dhan Yojana. Also, the high replacement rate makes these microfinance institutions a better option for the investors.