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Millions of people in rural India still struggle to access the basic financial services, especially tribal communities, which increases the financial burden of the country and skews the representation of growth and development. While the Indian economy is racing forward as one of the fastest growing economies in the world, there’s a stark contrast between its urban and rural population in terms of their participation in the formal financial system.
A report by the World Bank states that 190 million people in rural India don’t have bank accounts. This exclusion serves as the primary facilitator in upholding the poverty cycle for these regions and rule them out from receiving government support, exposing them to vulnerable sources of credit. Without secure and reliable financial resources, the rural population cannot invest in business, education or healthcare, creating an endless cycle of hardships.
For the tribal communities, the situation is even worse. They face not just the financial barriers but also the geographic isolation. Many of the community members lack proper identity documents to open bank accounts as well an understanding of how bank systems work. According to a report by the Reserve Bank of India, only 27 percent of tribal households can access formal credit, compared to 46 percent of other rural households. This glaring gap calls for initiatives that will help close the disparity.
This is why we have created Lend2Lead. Our aim is to address this pressing issue by democratizing access to microfinance and credit for underserved rural and tribal communities in India. The project strives to empower communities with tools and knowledge they need to achieve economic self-reliance and improve their quality of life. Together, we can solve the financial inequality at its roots and build an inclusive financial landscape for India.
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