Micro-rural industries in India face challenges accessing formal financial services and products, hindering their growth and preventing investment
Peer-to-peer lending provides a solution by democratising access to credit. It promotes mutual empowerment by enabling responsible borrowing and holding borrowers accountable for their growth while enabling investors to create an impact and earn a return on their investment
Digital social innovation (DSI) is a hybrid model that leverages digital technologies to connect low-income borrowers with lenders and combat poverty
By definition, the ‘micro-rural industry’ refers to small-scale businesses that operate in rural areas and are typically owned and operated by local residents. These businesses are instrumental in the economic development of rural areas, providing employment opportunities for the community and generating income. A few common examples of micro-rural industries would include agriculture, handicrafts, and small-scale manufacturing, among others.
While the sector has been significantly contributing to India’s growth story, for most of these people, access to formal financial services and products still remains a challenge. According to a report by the Reserve Bank of India, around 22% of Indians do not have a bank account, an aspect that has held the sector back and prevented investments in their businesses.