Financial inclusion was the most challenging mission as far as the economically weaker sections of society in India. Microfinance was given to the underprivileged for sustaining themselves and starting their own businesses. However, a number of operational and legal barriers that threatened the efficient operation of microfinance institutions (MFIs) restrained its growth. The purpose of this study was to understand the macro and micro challenges involved in the delivery of microfinance services in rural India. For the study of macro and micro issues faced by various institutions in providing microfinance, secondary data collection and informal interviews were done. The effective execution of delivery methods for microfinance was investigated in this article along with techniques that addressed the problems mentioned. In other words, the delivery challenges explained the macro and micro issues that different organisations encountered when delivering microfinance. Strategies were discussed making it workable and adoptable by various institutions participating in microfinance to counter or tackle the macro and micro delivery challenges faced. The findings showed the difficulties of people from rural areas, their inaccessibility to microfinance and the inability of MFIs in controlling transaction costs. The article has highlighted ways to provide as many rural residents as possible with the necessary credit money.

Challenges, delivery, microfinance, politics, strategies, structure

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