The majority of the Indian population does not have opportunities such as financial resources and therefore the ability to find work. They are stuck in an endless cycle that offers them no opportunity to escape poverty. Since the 1950s, developing country governments, international financing organizations and donor agencies have seen microcredit as a lifeline and an opportunity to help the poor get money. It was in the 1950s and 1960s that the Indian government first started providing loans to rural families working in the agricultural sector and urban-dwelling families working in the unskilled sector to promote economic growth across the country. 'India. Families in the agricultural sector were divided into three different groups depending on the type of work performed. Those doing similar jobs were placed in the same group, and the loan amount they would get depended on the type of work they did. The first group was that of small and medium-sized farmers. It also included artisans and people who raise poultry and other livestock without land. The second group was that of micro-enterprise workers. They were farmers or poultry/dairy farmers who sold their crops and products. Non-agricultural sector workers working in repair shops, wooden furniture manufacturing shops and other micro-enterprises were also included in this group. The third group was that of small agricultural, poultry and dairy businesses; and non-agricultural individuals. The groups usually employed 6-10 workers, who worked in one enterprise. In 1969, Prime Minister Indira Gandhi initiated the nationalization of commercial banks. The nationalization of commercial banks... half the paper... almost none of the poorest families had any kind of insurance coverage. Because the poor do not have stable jobs, their incomes are irregular and unpredictable, and banks have no collateral against which to lend; therefore banks do not want poor customers from both rural and urban areas. Furthermore, “geographical distance, widespread illiteracy and diverse backgrounds of borrowers” ​​(in this case the rural poor) and the frequency of high-cost transactions make it difficult and undesirable for banks to lend to rural areas. poor communities. Banks also believe that government rules and regulations make it difficult to distribute loans to the poor. The rural poor of India have their own financial needs which are influenced by their location, their living situation and their availability of resources and opportunities.