Micro Finance: Transforming Rural India- Catalyst in Shift of Rural Sector Economy -A Paper Based on Review of Literature

In this research paper researcher has tried to provide indebt literature and analysis, how and on what basis micro- finance has played a role of catalyst in transforming the economy of rural sector. Micro- finance has gained significant importance from last few years, as highest percentage of population of our country leaves in rural areas, therefore, it become vital important to uplift the growth potential of rural sector by adopting three sixty-degree approach i.e., rural economy must be improved in all aspects and for that the very first thing that need to be worked out was to improve the financial viability of the rural population and for this micro- finance have rendered lot of services from past few years like (providing loans, deposit schemes, insurance to poor and low- income households, business / financial support and operational consultancies to small and medium size enterprises) with an objective to improve their growth potencies. The findings of the research have enlightened how micro-financial institutions has played a role of catalyst by developing social capital and entrepreneurial capabilities to uplift poor section of the rural India.