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The Growth of Microfinance Institutions in India

Book Title: Emerging Trends in Commerce and Management

Editor:  Dr. Nilesh Anute

ISBN:  978-81-979197-7-0

Chapter: 20

DOI: https://doi.org/10.59646/emc20/255

Authors: 

Prof. Indrajeet Kole, Assistant Professor, Global Business School and Research centre, Dr. D Y Patil Vidyapeeth (Deemed to be University), Pune, Maharashtra, India.
Ms. Prajakta B Deshmukh, Assistant Professor, MBA Programme, SPPU, Sub Centre Nashik, , Maharashtra, India.

Learning Objectives

This chapter aims to provide readers with a comprehensive understanding of the growth and impact of microfinance institutions (MFIs) in India. Readers will explore the historical evolution of microfinance, from the early beginnings with informal self-help groups (SHGs) to the formalization and rapid expansion of MFIs. The chapter will delve into the crucial role of MFIs in promoting financial inclusion, providing access to credit, savings, and insurance services, and contributing to socio-economic development through poverty alleviation, women empowerment, and community development. Readers will examine the challenges and risks faced by MFIs, such as regulatory compliance, operational risks, client over-indebtedness, and sustainability issues. The chapter will also highlight future prospects for MFIs, including digital transformation, market expansion, enhanced regulatory frameworks, and the potential for social impact and sustainability.  

References

  1. Khandker, S. R. (2005). Microfinance and poverty: Evidence using panel data from Bangladesh. The World Bank Economic Review, 19(2), 263–286.
  2. Krenz, K., Gilbert, D. J., & Mandayam, G. (2014). Exploring women’s empowerment through “credit-plus” microfinance in India. Affilia, 29(3), 310–325.
  3. Leach, F., & Sitaram, S. (2002). Microfinance and women’s empowerment: A lesson from India. Development in practice, 575–588.
  4. Loomba, S. (2014). Role of microfinance in women empowerment in india. Mudakappa Gundappa. 
  5. Mayoux, L. (2007). Not only reaching, but also empowering women: Ways forward for the next microfinance decade. Microfinance and Gender: New Contributions to an Old Issue, 37, 35–60.
  6. Bohra D, Nagansur S and Anute N (2022) Comparative Analysis of FMCG Products with Special Reference to HUL and ITC, OmniScience: A Multi-disciplinary Journal, ISSN: 2231-0398 (Online) ISSN: 2347-9949 (Print) , Volume 12, Issue 2, Page no. 1-10.