Microfinance and Rural Development: Access to Finance for Economic Development Through Financial Inclusion

Mr. Nagaraja. K, Dr. Vadivelu A and Mr. Naveena R A
Additional contact information
Mr. Nagaraja. K: Research Scholar, Department of Economics, Thiruvalluvar University Serkkadu 632115, Vellore
Dr. Vadivelu A: Department of Economics, Kuvempu University, Jnana Sahyadri, Shankaragatta, 577451, Shivamogga
Mr. Naveena R A: Department of Economics, Kuvempu University, Jnana Sahyadri, Shankaragatta, 577451, Shivamogga

International Journal of Latest Technology in Engineering, Management & Applied Science, 2025, vol. 14, issue 6, 256-262

Abstract: Microfinance has become a crucial mechanism for fostering rural development and promoting financial inclusion, particularly in developing countries like India. With a large proportion of India’s population residing in rural areas, access to formal financial services has historically been limited. Microfinance bridges this gap by providing small loans, savings accounts, and insurance products to underserved populations, particularly the poor and women, empowering them to start businesses, improve agricultural productivity, and enhance their standard of living. In rural India, microfinance institutions (MFIs) facilitate access to finance that traditional banks often overlook due to high transaction costs and perceived risks. By offering financial products tailored to the needs of low-income communities, microfinance enables individuals to move away from informal lenders with exploitative interest rates, fostering economic stability. Additionally, it promotes entrepreneurship and job creation, which are critical for local economic development.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ijltemas.in/DigitalLibrary/Vol.14Issue6/256-262.pdf (application/pdf)
https://www.ijltemas.in/papers/volume-14-issue-6/256-262.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bjb:journl:v:14:y:2025:i:6:p:256-262

Access Statistics for this article

International Journal of Latest Technology in Engineering, Management & Applied Science is currently edited by Dr. Pawan Verma

More articles in International Journal of Latest Technology in Engineering, Management & Applied Science from International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Bibliographic data for series maintained by Dr. Pawan Verma ().