Challenges of Microfinance Beneficiaries in Agricultural and Nonagricultural Credit

Abstract

T Microfinance programs are a great way for low income people in rural areas to start their own income generating activities and makes their ends meet. Since, borrowing itself is a big challenge, there will always be a challenge in everything doing with that money.Borrowing for Agricultural and Non agricultural activities ultimate objective is to make at least an income which meets the repayment of the borrowed capital without any additional credit. Gestational period payments , complication in sale of products due to competition of branded products, limitation in area of marketing due to lack of storage and transportation ,loss due to technical inefficiency and underutilisation of capacity etc are the main challenges faced by agricultural and non agricultural microfinance borrowers