Micro Finance Borrowers in Assam A Study of RBI Policies for Micro Finance

Abstract

            Micro finance provided to those who have difficulty in accessing formal financial service. It is targeted at the low income people of our country. The first initiative to introduce micro-finance was the Self Employed Womens Association (SEWA) in Gujarat, which established SEWA bank in 1974. Micro finance comprises several financial tool such as saving, credit, insurance and cash transfer. Interest rates on micro finance are generally higher than that on traditional personal loans. In this paper I can try to explain the recent RBI policies for micro finance and is the borrowers are generally from the low income background.