financial institutions, task force, small marginal farmers and rural artisans, economically_x000D_
weaker sections, self help group
Microfinance means giving very small loans to very poor people to help them to grow their tiny
businesses, as well as to pull themselves out of poverty by increasing the level of income and
building viable businesses. It includes a broader range of services as credit, savings, insurance
etc. Sometimes it is called as “banking for the poor people” Recently it has been observed that the
importance of “Microfinance” is rising high to maintain a sustainable socio-economic status of all
developing countries. In this paper we try to highlight the challenges of microfinance especially in
India and Bangladesh.
A study of these two countries shows us that how the microfinance helping and assisting the
lower income groups and self help groups to get rid out of the poverty, which is a great slur and
hindrance of a developing country. With the help of microfinance, microcredit and financial institutions,
the poor people can survive their livelihoods in a very a stable and secured way. The poor
people become self sufficient and self employed by getting microcredit, which enables them to
engage in productive activities.