In the modern era of economic development, the need and essence of micro finance and micro credit providing institutions are very significant. Micro finance is a credit investment system availed by the poor people and small scale, medium scale, cottage industrialist for finance requirement. For any kind of industry weather, it is small or large, finance is fundamental component, large scale business concerns mobilise funds easily from various sources but collection of financial resources is difficult to micro industries comparatively because of various determinants. This is a descriptive form of article which envisages various key issues, problems and challenges related to micro finance institutions in Karnataka.

Keywords : Micro-finance, Issues, Challenges,