is micro-financing really benefiting the poor ?

[Hiral.s]

Micro-finance means transactions in small amounts of both credit and saving, involving mainly small-scale and medium-scale businesses and producers. The poor, who cannot run a small business because they lack capital, may also benefit from micro-finance organization. but is microfinancing benefeting the poor ?

 

[vardhanvishnug]

yes its benefitting but the problem is its not reaching them properly and also there is some harassment going on if they are unable to pay back in time

 

[Paramjeet_1988]

Well this issue was repeatedly addressed by our RBI governor Mr Subbarao, he had repeatedly pointed out that muscle power is being used for extracting the loan amount given. This practice has resulted in harassment of the poor people and serious policy approach is being discussed to remove this problem. The micro financing insures better financial inclusion and will ensure better partcipation of the public.