Is Microfinance right for you?

The popularity of microfinance in India is growing more than ever. But now that we are here, some of you might be in doubt about whether microfinance is the right option for you to rely on. In this regard, we would first enlighten you about the current global financial scenario. With the coronavirus pandemic wiping out entire economies and unprecedentedly restricting them far from their respective projected targets, it is more important now than ever that you start planning your personal finance in a much more systematic manner.

Some wisdom to consider

You must understand that the world’s finance condition won’t be the same ever again. Fear is lurking among consumers, and as the famous billionaire Warren Buffet once said, when there’s greed in the market, it’s wise to hide. And he also said that when everyone around you is afraid, it’s the best time for you to get interested in finance. 

Now is the best time for you to prioritize your financial goals. Here, we would also like to talk about the 2006 Nobel Peace Prize winner Dr. Mohammed Yunus and his vision. Dr. Yunus had said that the poor and the less-privileged class of our society are never given the opportunity for growth. In this modern free world, what would stop anyone from achieving their goals? Well, it is the absence of the right financial infrastructure and the lack of appropriate support that restricts the poor from owning their rights. This is where microfinance comes to play.

Microfinance: A New Hope

The sole aim of starting the concept of microfinance was to help people get rid of poverty. It was generally aimed for the upliftment of the lowest echelons of modern society and so far, the places where microfinance has been spread out across the grass root levels, those areas have witnessed a significant level of poverty eradication.

Farmers have got their fair opportunities and some of the wise men have even started their own agricultural enterprises, which in turn has boosted the rate of new entrepreneurship projects. The main motto of providing microfinance services to the society is to initiate a constructive change and the strengthening of the society’s financial backbone.

It is no doubt that the proper penetration of microfinance in developing economies such as India would ultimately boost the country’s GDP as a whole. But while doing so, it would spur growth in the grass root levels of the economy, which in turn, would lead to a financially prosperous society.

How microfinance could be used for the betterment of society?

As you already know that microfinance involves the facility of providing and availing financial services in the form of insurance terms, loans, and the promotion of savings. And more importantly, it also includes the spread of proper education and training to help people get out of the poverty line. With financially backward entrepreneurs with dreams being given the right support and financial backup, many more small businesses will flourish across the length and breadth of the country.

And for our country to emerge as a financially independent country, that too in the tough post-pandemic period, microfinance will continue playing a major role.