Micro finance has proved its value, in many countries, as a weapon against poverty and hunger. It really can change peoplesââ?¬â?¢ lives for the better - especially the lives of those who need it most. In developing countries like India, access to financing and other banking services can be a major challenge for the countryââ?¬â?¢s poor, seeking to raise their standard of living. These people often have little, if at all, income or properties to use as collateral to secure loans from formal lending institutions like banks. For these people even small amounts of money ââ?¬â?? enough to purchase cattle or provisions for a store ââ?¬â?? can make a difference to their livelihood. Mainstream banks find it challenging to offer services to the poor because the income generated cannot cover the bankââ?¬â?¢s cost of servicing the loans. Consequently, the poor are often forced to turn to informal and unregulated loan sources ââ?¬â?? moneylenders, who sometimes charge interest as high at 100% a month. The result is a cycle of endemic poverty that is almost impossible to break. The MFIs were born out of this need for timely and affordable credit to Indiaââ?¬â?¢s poor and low-income households. An attempt is made in this paper to analyze and interpret the efficiency and effectiveness of the Micro finance Institutions in terms of outreaching the poor and excluded, different types of products offered by them and socio-economic empowerment factor of women through MFIs.
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