Microfinance is "small -scale financial services-primarily credit and savings-provided to people who farm, fish or herd" and refers to all types of financial services provided to low-income households and enterprises. Microfinance is thus: an activity undertaken by the alternate sector (NGOs); something done predominantly with the poor; and something that grows out of developmental roots. Success stories in neighboring countries gave a huge boost to the concept in India in the 1980s. India therefore, adopted the same model and took a number of steps to promote micro financing in the country.