A STUDY ON IMPACT OF MICRO FINANCE BANK ON ECONOMIC A DEVELOPMENT

Abstract

This study explores the role of microfinance banks in promoting economic development particularly in underserved and low-income communities. It investigates how access to small-scale financial services can empower individuals, especially women, to start or expand businesses. The research highlights how microfinance contributes to poverty reduction, job creation, and income generation. It also examines the challenges faced by microfinance banks, including sustainability and repayment risks. Data is gathered through surveys and interviews with beneficiaries and financial experts. The findings suggest a positive correlation between microfinance access and economic upliftment. However, it stresses the need for regulatory support and financial literacy. The study also emphasizes inclusive growth as a key outcome. Overall, microfinance is shown to be a catalyst for grassroots economic development.