Multiply India - Information on Financial Planning

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What Are The Different Channels For Accessing Microcredit Through MFIs

Self Help Groups (SHGs): Self-help groups are financial inclusion and development institutions. They are usually funded by NGOs, governments, or directly by banks. These groups provide small financial assistance and, at the same time, offer financial management and development practices to women who seek to break traditional barriers in rural India. Most self-help groups are part of larger community programs.

Cooperative Banks and Commercial Banks: Co-operative banks are financial institutions where the customers are also the owners of the bank. Commercial banks provide all types of banking services and are mainly set up for profit. Both these types of banks offer the funds for Microfinance Institutes.

Small Finance Banks: Small finance banks offer credit facilities to the remotest parts of India. They offer financing options for micro and small industries, small businesses, marginal and unorganised institutions, marginal farmers, etc.

Regional Rural Banks: Regional Rural Banks are also called Gramin Banks or Vikash Banks. Regional Rural Banks are owned by the Ministry of Finance branch of the government. They provide financial services and assistance to district regions in each State of India. These banks were put in place to provide necessary financial services to rural parts of the country.

Scroll along to know about the ways to get a loan from an MFI