Abstract: Microfinancing is the concept of banking that provides financial stability to the poor people of the country and empowered them financially to start their businesses. Microfinancing provides funds to the low-income group of the country through different loan facilities. Microfinancing systems also provide reasonable loans and that improves loan repayment among the people which is important for the economic growth of the country. Microfinance loans enhanced the per capita income of the poor people of the country and that helped to enhance the economic growth in the country. The study aims to examine the impact of micro financing on the economic growth of the country. The primary objective of the study is to identify and evaluate the impact of microfinancing in developing economic growth in India through a survey of 51 managers of micro finance institutions. The secondary quantitative data collected about the importance of micro finance institutions were also examined by 10 survey questions. Data analysis is also done by "IBM spss” software which is important to improve the understanding about micro financing. The statistical representation of collected data also provides an insightful overview of micro financing and its impacts on economic growth in developing countries like India.

Keywords : Economic growth, financial stability, institution, micro finance banking, micro finance loan, Micro financing