The organizations like BSS, Sangamithra, Grameena Koota, SKDRDP, and Janodaya foundation in Karnataka have proved beyond doubt that the micro finance helps the poor not only to increase their income level, but also act as a viable business model. There is huge potential for micro finance to emerge as a successful model to address the problems of unemployment, women backwardness and poverty in India.

Micro Finance Institutions (MFIs) have emerged with an ambitious vision of alleviation of people living below poverty line and to bring the poorest of the poor to the mainstream of the economy. This paved the way for poor, especially the rural poor, to become economically independent. Micro finance has evolved as one of the important economic development tool to support low-income group by providing financial assistance for self-employment. Financial services of MFIs generally include savings and credit; however, some micro finance institutions also provide insurance and payments services. In addition to financial intermediation, many MFIs provide social intermediation services such as group formations, creating self-confidence among the rural folks, training programmers on financial literacy and marketing skills.

MFIs vision is to reach out and bring sustainability in the services to achieve the objective of the institution. Micro finance programs have the potential to transform power relations and empower the poor—both men and women. In well-run micro finance programs, there is a relationship of respect between the provider and the client that is inherently empowering. As a consequence, micro finance has become a central component of many donor agencies' and national governments' gender, poverty alleviation, and community development strategies. Several studies and the experiences of a number of MFIs have shown, however, simply putting financial resources in the hands of the poorest of the poor is not enough to bring about empowerment and welfare.

Professional Banker Magazine, Micro Finance Institutions, MFIs, Business Model, Economic Development Tool, Social Intermediation Services, Micro Finance Programs, Community Development Strategies, Poverty Alleviation, Financial Resources, Self-Help Group Model, Commercial Banks, Grameen Bank Model, United Nations Development Programme, National Sample Survey Organization, Information Technology.