New Delhi, July 22 -- The Microfinance industry of India is playing a significant role in driving financial inclusion by empowering underserved segments across India, said a report by Avendus Capital.

The report stated that over the last two decades, the sector has experienced multiple structural and cyclical disruptions, yet has consistently demonstrated resilience and the ability to rebound.

Over the last few financial years, the credit growth rate of microfinance institutions has been staggering, at approximately 18 per cent, according to an estimate from SIDBI's Microfinance Pulse report. This is higher than the average credit growth of the banking sector.

A microfinance organisation is a credit provider, much like a bank. Nonethel...