You probably may have noticed a recent boost in the popularity of microfinance in India. But what you didn’t notice is that the concept of microfinance was already very much existent in India right from the ancient times. Well, you might argue that the primitive concepts weren’t at all a comforting sign for the money lenders.
Past v/s Present
In the past, a lender could have borrowed some money for sure, but they didn’t have the opportunity to enjoy relaxing interest rates. This was mainly because of the feudal psychology that the rich class of people possessed. Today, anyone in need of financial assistance can simply go ahead and apply for a microfinance loan and guess what, they will be granted the loan in the quickest possible time frame. Now, they might have a false belief that repayment might be a problem because most companies demand too much interest. It’s very much fortunate that in today’s modern free economy, such is not the case. Microfinance marketplaces have completely changed how money is traded in today’s society.
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More economic power for the underprivileged
The economically backward societies and those that haven’t been given too many opportunities to flourish are the ones who are getting full support nowadays, thanks to the ever-evolving government norms and burden-easing initiatives. The boom of the microfinance marketplaces in India has opened up a new array of opportunities for the poor, and more importantly, today more dreams of the underprivileged are coming true as compared to what used to be even a decade ago. Today, the poor have got the power in their hands to change the future and the easy and abundant availability of microfinance products and services has made the utopian dream a reality.
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How microfinance marketplaces in India are building the future?
To understand how microfinance is transforming India in current times, we have to look into the data available to us. The growing popularity for micro-financial lending can be seen from the fact that in the year 2013, microfinance marketplaces have distributed loans worth about $2.42 billion, which was 177% more than the figures recorded in 2012.
As years go by, the volume is exponentially growing, which shows a bright future ahead for not only India’s domestic microfinance sector but also how the less and underprivileged sections of our society. With more money allocated to their use, even the silent-most dreams can come true.
Motto of microfinance
Everyone should get an equal opportunity but none of the receivers of these opportunities should feel like being a subject of charity. That is what microfinance is all about. Being helpful but not becoming a charity! And the Indian microfinance marketplaces have redefined the industry that was long forgotten.
While microfinance is there for a long time, the introduction of Peer-to-Peer (P2P) lending in the Indian microfinance sector is a new petal in the country’s economic flower, and it has already proved itself to be a significant part.
Over the upcoming decades; thanks to the availability of world-class microfinance marketplaces in India, the enthusiastic youth of rural and semi-urban India will be largely benefitted. Based on their initiatives, the future India Inc. will be built.