NABARD's micro-finance project to have corpus
Mumbai: The growing success of micro-finance movement in the country has led the National Bank for Agriculture and Rural Development (NABARD) to propose setting up an institution for this purpose with a corpus of Rs 500 crore in three years. The micro-finance institution, to be set up on a pilot basis, is aimed at providing easy credit to needy farmers who are now at the mercy of local money lenders.

The proposed institution would demonstrate all the best practices ... as against the usurious interest rate, extortion, lifting of cattle amomg other problems being faced by the farmers borrowing from local money lenders and financial institutions NABARD officials said. NABARD has done quite a lot in area of mirco-finance for over a decade now.

Through the micro-finance initiative, NABARD will be also extending the frontiers of financial inclusion. The proposed fund will be specifically used for the purpose of improving credit absorption levels, particularly among the vulnerable sections of the society.
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