Microfinance is a source  of financial services for entrepreneurs and small businesses lacking access to banking and related services.The two main mechanisms for the delivery of financial services to such clients are:

1.  Relationship-based banking  for individual entrepreneurs and small businesses; and

2. Group-based models, where several entrepreneurs come together to apply for loans and other services as group.

For some, microfinance is a movement whose object is  a world in which poor and nearpoor households as possible have permanent access to an appopriate range of high quality financial services, including not just credit but also saving,insurance and fund transfer. The microfinance is a way to promote economic development,employment and growth through the support of micro entrepreneurs and small businesses for helping poor people out of poverty.


Microfinance Through Self Help Group( SHG's)

        A Self Help Group (SHG) is a financial intermediary committee usually composed of 5 to 20 local women or men.A mixed group is generally  not prefered. Members make small regular savings contributions over a few months until there is enough capital in the group to begin lending. In Vidarbha many SHG's are linked to NUCC Society branches for raising finance and  funds may then be lent back to the members for any purpose.