The Microfinance Review

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Financial Sustainability and Outreach:Performance of Microfinance Institution in India


Affiliations
1 Department of Economics, Chaudhary Charan Singh University, Meerut, India
     

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Microfinance has emerged as a medium of extending financial services to the unbanked sections of population. In India, microfinance evolved in the late 1980s and exists under various legal structures such as Trusts, Societies, Section 25 companies under Companies Act 1956, Non-Banking Financial Companies (NBFCs) and Non-Banking Financial Companies - Microfinance Institutions (NBFC-MFIs). Sustainability and outreach are widely discussed issues in the field of microfinance today. An MFI cannot help the poor in the long run, if it cannot survive in the absence of financial resources. In this paper, the link between financial sustainability and outreach of MFIs is analysed.


Keywords

Microfinance Institutions, Financial Sustainability, Outreach, Legal Structure, Efficiency.
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  • Micrometer (2016): Report published by Micro Finance Institution Network (MFIN).

  • Sarma G K and Borbora, S (2011): “Is Microfinance Outreach Sustainable? A Case of Microfinance Institution Model in India”, Second European Research Conference on Microfinance, University of Groningen, Netherlands.


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  • Financial Sustainability and Outreach:Performance of Microfinance Institution in India

Abstract Views: 243  |  PDF Views: 0

Authors

Priti Singh
Department of Economics, Chaudhary Charan Singh University, Meerut, India
Bhawana Chauhan
Department of Economics, Chaudhary Charan Singh University, Meerut, India
Kratika Singh
Department of Economics, Chaudhary Charan Singh University, Meerut, India

Abstract


Microfinance has emerged as a medium of extending financial services to the unbanked sections of population. In India, microfinance evolved in the late 1980s and exists under various legal structures such as Trusts, Societies, Section 25 companies under Companies Act 1956, Non-Banking Financial Companies (NBFCs) and Non-Banking Financial Companies - Microfinance Institutions (NBFC-MFIs). Sustainability and outreach are widely discussed issues in the field of microfinance today. An MFI cannot help the poor in the long run, if it cannot survive in the absence of financial resources. In this paper, the link between financial sustainability and outreach of MFIs is analysed.


Keywords


Microfinance Institutions, Financial Sustainability, Outreach, Legal Structure, Efficiency.

References