Microfinance in rural India helps people in need by providing banking services and support for small businesses. It aims to reduce poverty, help farmers pay debts, and improve economic and social status. Traditional banking hasn't met the needs of rural areas, so microfinance steps in to fill the gap. With over 30% of people living in poverty in India, microfinance plays a crucial role in providing basic banking services and helping people become debt-free. Government agencies are helping to expand microfinance services in rural India.