Published Paper Details:

Microfinance becomes a tool for development in the third world countries. Modern microfinance is started from Bangladesh, but India too has a mature history of microfinance The aim of microfinance is lending the credit to poor so that they can enhance themselves economically and can be lifted out of poverty. India considers microfinance as an alternate credit delivery system. Microfinance started with noble cause to reduce the world poverty and committed to overall development of the poor. However, microfinance diverted from its main objective of social development and just become an agency of providing credit like any other financial organizations. This article examines the journey and changing trajectory of microfinance in India since inception. The paper concludes that the landscape of microfinance has changed from social objective of serving the unserved by extending credit to profit motives of microfinance institutions (MFIs) by commercializing themselves. And MFIs diverted from its path for what it was meant.