Financial inclusion is generally defined as the availability of banking services at an affordable cost to disadvantaged and low-income groups. In India the basic tool of financial inclusion is having a saving or current account with a bank. But how many underprivileged people actually hold a bank account? How many are encouraged to do so? Even if they do hold an account, do they have an access to credit and advisory fascilities? To achieve inclusive growth in the country, expanding the scope of financial inclusion initiatives like immediate credit facilities, insurance facilities, financial advisory services etc. to reach out to people at the grass-root level is instrumental. Access to affordable credit, cultivating the habit to save money and face to face financial advices are the most beneficial aspects of financial inclusion. Microfinance is a gateway to achieve this financial inclusion that we are talking about

 

Lack of collateral or guarantors, inability to communicate the need and the high transaction costs in the banks make it difficult for the potential but financially restricted entrepreneurs to forge ahead with their ideas. On other hand, heavy rate of interests and unjust conditions by moneylenders make it difficult to raise the capital. Microfinance serves as a tool for providing financial services to the low-income population., which do not have access to the mainstream financial services.

 

 

Microfinance recognizes that poor people can be remarkable reservoirs of energy and knowledge. Often the Beneficiaries are from a low-income groups and require Loans are of a small amount. These loans are for short duration and offered without collateral. Loans are generally taken for income generation purposes, NYCS believes in empowering every capable person to contribute to the national economy after his own economic needs are satisfied. JanaNidhi is a dedicated division of NYCS that will encourage entrepreneurs to create or expand their business by providing them microfinance.