Globally, it is proven that access to finance is a necessary condition for sustaining livelihoods and raising incomes. This is especially true for Bottom-of-Pyramid (BoP) families, who have traditionally been bypassed by the formal sector on account of their small requirements and the need for personalized touch.
Microfinance emerged as a response to this; offering small scale financial services through doorstep delivery. The enormous success of the model in reaching the underserved market is amply demonstrated by the fact that at present microfinance reaches around 60 million low income clients in India.
The figure is impressive by itself but becomes more significant seen with the fact that comparable figure for all Scheduled Commercial