Abstract
Micro Finance- A form of financial support given in the form of loans with low rates of interest for the lower income individuals who do not have access to the banking system and regular income, with the motto of providing financial support for establishing their own business and for its daily operations. Micro Financing is divided into two types, namely- Organized and Unorganized Micro Finance. Organized Micro Financing includes Organizations such as MFIs, cooperatives, and sectors of government banks. Unorganized Micro-Financing include money lenders, private financial institutions etc. Recently a lot of drawbacks and failures have been witnessed in the Unorganized Micro-Financing Sector. Few of the reasons being-High Interest rates, unauthorized financiers, harassment of borrowers and scams. Thus the government has introduced schemes such as JanDhan Program, Mudra Scheme, etc to bring the people under organized Financial sector. Recently Karnataka State Government has taken an initiative to provide finance for vegetable vendors from Rs.1000 to Rs.5000 with an interest of 1% with the sole security of their Adhar Card Photo copy. The Pilot project will commence from 13th September 2018 in K.R Market. The objective of the study is to understand the perception of vendors in market towards the Micro-Financing Scheme to be implemented by the State Government.
KeyWords – Micro Finance, Money Lenders, Government Initiative, Interest Rates, Schemes
Bibliography
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