The Microfinance Review

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Empowering the Masses : The Phenomenal Growth and Progress of Microfinance in India


Affiliations
1 Department of Commerce DAV College, Chandigarh, India
     

   Subscribe/Renew Journal


India is home to a large population of people who live below the poverty line, and whose access to financial services has traditionally been limited. Microfinance, which involves providing small loans and other financial services to low-income individuals, has emerged as a powerful tool for poverty alleviation and financial inclusion in India. In this paper, we examine the growth and progress of microfinance over the past few decades. We explore the history and evolution of microfinance, including the role of government policies and regulatory frameworks. We also examine the various models of microfinance institutions that have emerged, including self-help groups, non-banking financial companies, and microfinance banks. We analyze the impact of microfinance on the lives of low-income individuals, including women and rural populations, and assess the challenges and opportunities facing the microfinance industry. Finally, we conclude with a discussion of the future of microfinance and its potential to drive economic growth and social development.

Keywords

Microfinance, Financial Inclusion, Inclusive Growth, Poverty Reduction.
User
Subscription Login to verify subscription
Notifications
Font Size

  • Banerjee, A, E Duflo, R Glennerster and C Kinnan (2010): “The Miracle of Microfinance? Evidence from a Randomised Evaluation”, American Economic Journal: Applied Economics, Vol. 2, No. 3, pp. 22-53.

  • Bhatnagar, M (2015): The Origins of Microfinance in India, Journal of Social and Development Sciences, Vol. 6, No. 2, pp. 29-34.

  • Dutta, S, S K Chattopadhyay and R Bhattacharya (2019): “Women Empowerment through Microfinance in Rural India”, International Journal of Rural Management, Vol. 15, No. 2, pp.189-204.

  • Hasan, A and N Ahmad (2021): “Enhancing Financial Inclusion Through Microfinance and Digital Technology: An Empirical Investigation of India”, International Journal of Bank Marketing, Vol. 39, No. 2, pp. 424-438.

  • International Finance Corporation (2017): Microfinance in India: Challenges and Opportunities, IFC, World Bank, Washington DC. Retrieved from https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/industries/financial+markets/resources/microfinance+in+india

  • International Finance Corporation (2014): Microfinance in India: Challenges and Opportunities, IFC, World Bank, Washington DC.

  • International Online Medical Council (2017): “Financial Literacy and Microfinance in India”, International Journal of Innovative Research in Science, Engineering and Technology, Belgium.

  • Jeyaseelan, M and M Ganesan (2019): “Microfinance and Financial Performance of Small and Medium Enterprises in India: An Empirical Investigation”, International Journal of Entrepreneurship and Small Business, Vol. 36, No. 3, pp. 315-329.

  • Kabeer, N (2001): “Conflicts Over Credit: Re-Evaluating the Empowerment Potential of Loans to Women in Rural Bangladesh”, World Development, Vol. 29, No. 1, pp. 63-84.

  • Microfinance Institutions Network (2021): MFIN Micrometer: An Overview of the Indian Microfinance Industry - December 2020, MFIN, Haryana.

  • Microfinance Institutions Network (2021): Microfinance Industry Report, MFIN, Haryana. Accessed from https://www.mfinindia.org/wp-content/uploads/2021/05/MFIN-Industry-Report-March-2021.pdf

  • MicroSave Consulting (2021): Digital Financial Services in India: Opportunity for Financial Inclusion, MSC, New Delhi.

  • MicroSave Consulting (2017): Impact of Microfinance in India, MSC, New Delhi. Retrieved from https://www.microsave.net/2017/05/15/impact-microfinance-india/

  • Ministry of Finance (2021): Annual Report 2020-21, Ministry of Finance, New Delhi. Retrieved from https://www.indiabudget.gov.in/doc/Annual_Report/Annual_Report_2020-2021.pdf

  • Ministry of Finance (2021): Pradhan Mantri Jan Dhan Yojana, Ministry of Finance, New Delhi. Retrieved from https://financialservices.gov.in/sites/default/files/PMJDY_14_05_2021.pdf

  • National Bank for Agriculture and Rural Development (2021): SHG-Bank Linkage Programme, NABARD, Mumbai. Retrieved from https://www.nabard.org/content.aspx?id=176

  • National Bank for Agriculture and Rural Development (2019): NABARD All India Rural Financial Inclusion Survey 2018-19, NABARD, Mumbai.

  • National Bank for Agriculture and Rural Development (2017): Report on Micro, Small and Medium Enterprises in India, NABARD, Mumbai. Retrieved from https://www.nabard.org/auth/writereaddata/tender/1011170215MSMEReportVol1MainReport.pdf

  • National Sample Survey Office (2015): Key Indicators of Debt and Investment in India, NSSO, New Delhi. Accessed from http://mospi.nic.in/sites/default/files/publication_reports/KI_Debt_Investment_30june15.pdf

  • Puhazhendhi, V and K J S Satyasai (2019): “Impact of Microfinance on Rural Household Income and Employment in India: A Panel Data Analysis”, Journal of Development Areas, Vol. 53, No. 1, pp. 97-114.

  • Reddy, D P, G R Rao and Y V Ramanaiah (2020): “An Empirical Study on SHG-Bank Linkage Programme in India”, Journal of Small Business and Entrepreneurship Development, Vol. 8, No. 1, pp. 49-61.

  • Reserve Bank of India (2021): Basic Statistical Returns of Scheduled Commercial Banks in India, RBI, Mumbai. Retrieved from https://www.rbi.org.in/Scripts/BSR_Download.aspx.

  • Reserve Bank of India (2020): Basic Statistical Returns of Scheduled Commercial Banks in India, RBI, Mumbai. Accessed from https://www.rbi.org.in/ Scripts/BS_ViewBulletin.aspx.

  • Reserve Bank of India (2020): Microfinance in India, RBI, Mumbai. Retrieved from https://www.rbi.org.in/scripts/FAQView.aspx?Id=116

  • Reserve Bank of India (2017): Handbook of Statistics on the Indian Economy, RBI, Mumbai.

  • Saha, S and S K Saha (2019): “Microfinance in India: A Review of Empirical Literature”, International Journal of Economics and Business Research, Vol. 7, No. 2, pp. 176-191.

  • Sahoo, P K, M Choudhury and R Subudhi (2019): “Perception of Bankers Towards Microfinance: An Empirical Study”, Journal of Entrepreneurship Education, Vol. 22, No. 2, pp. 1-12.

  • Singh, P and S Singh (2019): “Microfinance and Women Entrepreneurship in India: A Study of Delhi NCR”, Journal of Rural Development, Vol. 38, No. 3, pp. 363-377.

  • Small Industries Development Bank of India (2021): Indian Microfinance Sector Report 2021, SIDBI, Lucknow. Accessed from https://www.sidbi.in/sites/default/files/downloads/Publications/MSR_2021.pdf

  • Subrahmanyam, G and L K Jena (2019): “Microfinance and Women Empowerment: An Empirical Analysis of Attitudes and Outcomes in India”, Journal of South Asian Development, Vol. 14, No. 3, pp. 337-359.

  • Sudhakar, N and M Kumar (2019): “Microfinance and Financial Inclusion in India: A Study on Awareness of Small and Marginal Farmers”, Journal of Rural Studies, Vol. 73, pp. 50-57.


Abstract Views: 178

PDF Views: 0




  • Empowering the Masses : The Phenomenal Growth and Progress of Microfinance in India

Abstract Views: 178  |  PDF Views: 0

Authors

Meenu
Department of Commerce DAV College, Chandigarh, India

Abstract


India is home to a large population of people who live below the poverty line, and whose access to financial services has traditionally been limited. Microfinance, which involves providing small loans and other financial services to low-income individuals, has emerged as a powerful tool for poverty alleviation and financial inclusion in India. In this paper, we examine the growth and progress of microfinance over the past few decades. We explore the history and evolution of microfinance, including the role of government policies and regulatory frameworks. We also examine the various models of microfinance institutions that have emerged, including self-help groups, non-banking financial companies, and microfinance banks. We analyze the impact of microfinance on the lives of low-income individuals, including women and rural populations, and assess the challenges and opportunities facing the microfinance industry. Finally, we conclude with a discussion of the future of microfinance and its potential to drive economic growth and social development.

Keywords


Microfinance, Financial Inclusion, Inclusive Growth, Poverty Reduction.

References