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Abstract
Microfinance is the provision of a broad range of financial services such as – deposits, loans, payment services, money transfers and insurance products to the poor and low-income households, for their microenterprises and small businesses, to enable them to raise their income levels and improve their living standards. It is based on the principle of providing financial assistance to the poor and downtrodden so that they can pull themselves out of poverty. Thus, MFIs strives to meet interrelated financial and social goals. The success of the Microfinance Institutions (MFIs) depends not only upon its financial sustainability but also on its social performance i.e how well the MFIs translate their social goals into practice because MFIs have to strike a balance between commercial viability and serving the poor. While fulfilling the social goals, Microfinance Institutions need to fulfill some responsibilities towards their clients. A number of Microfinance Institutions are also operating in Assam and providing financial services to the people who do not get financial services from the main banking system.