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@article{198754,
        author = {RENSON JOHN},
        title = {THE ROLE OF MICROFINANCE IN THE RURAL DEVELOPMENT OF INDIA},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {11},
        pages = {11756-11761},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=198754},
        abstract = {Formal financial institutions failed to reach the poorer sections of the rural society due to informational asymmetry, moral hazard and enforcement problems. The necessity of having alternative rural credit systems which will solve the problems of rural credit institutions is clearly warranted. Micro finance institutions are seen to have characteristics that help solve the problems moral hazard and adverse selection, which other institutions failed to do. Group lending, peer monitoring and joint liability systems solve the adverse selection and moral hazard issues associated with rural credit markets. The objective of the study is to examine the success of the micro finance as an institution that solves the problems of moral hazard and adverse selection, which are the existing problems of rural credit institutions. Micro finance is emerged as a powerful instrument for providing basic financial facilities to the rural poor, women, (in rural, semi-urban areas) small and marginal farmers, rural artisans and economically weaker sections. Micro-finance is defined as the provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban or urban areas so as to enable them to raise their income levels and improve their living standard. In underdeveloped regions fighting with higher presser of population severe poverty and socioeconomic disparities, rural economy plays crucial role for providing livelihood facilities. This study is mainly focuses on the role of microfinance in the rural development of India.},
        keywords = {Rural Credit, Agriculture, SHG-Bank Linkage Programme, MFIs},
        month = {April},
        }