Role Of Micro Financial Institutions In Promoting Socio Economic Development In Telangana

Abstract

In Developing Countries Like India, Households Require Finance For Many Reasons. These Include Consumption And Covering Lump Expenses Such As A Marriage Or Illness. But Most Importantly, They Need It To Generate Income. Access To Credit Is Essential To Meet Critical Needs. Socio-Economic Development Requires Adequate Credit At A Reasonable Cost. Financial Inclusion Is Possible Only If There Are Formal Credit Agencies That Can Fulfill These Conditions. To Meet Households' Credit Needs At An Affordable Level And At A Low Cost. Numerous Studies Have Shown That The Poorest And Most Vulnerable Can Access Safe And Affordable Credit. The Preconditions For Growth And Income Inequality Reduction Are Poverty And Areas That Are Disaffected. This Paper Examines The Role Of Financial Institutions In Providing Formal Credit Access To Rural And Urban Areas That Are Most Vulnerable. The Study Also Examines The Role Of Financial Institutions In Providing Credit To Vulnerable Groups. Discuss The Issues Faced By Micro Financial Institutions And Recommend Possible Ways To Prevent Them From Becoming Dangerous.