To effectively provide micro finance at the root level, studies undertaken in Asia suggest that it should be routed through organization of users. The lack of technical knowledge and market intelligence is a major hindrance. It can be overcome by joining up with institutions, which can provide necessary expertise and leadership.

Micro credit to farmers and artisans needs to be routed through some voluntary agencies preferably of farmers and/or artisans. This has been the findings of almost all research studies undertaken in this regard particularly in Asia. The reason is very obvious. Most of the farmers and artisans in rural areas do not possess necessary skills and drive to transform themselves as viable entrepreneurs. They lack in technical knowledge and market intelligence. It is, therefore, necessary that they should get support from within by grouping themselves and also by joining with others who have necessary expertise and leadership to become better entrepreneurs.

Further, it would be advisable for commercial banks not to be branch-centric for catering micro credit to farmers and artisans. Merely conceiving a specialized branch to cater to rural finance may not be an adequate innovation. Banks should be encouraged to innovate and experiment as no foolproof institutional framework exists today. In fact, almost all research studies have found that conventional banking would not be able to reach farmers and artisans and for that reason most of them have remained under the clutches of moneylenders who, over the years, have swindled farmers and artisans by providing facile loans at a heavy cost.

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