| Abstract: |
Micro-Finance is emerging as a powerful instrument for poverty alleviation in
the new economy. In India, micro-Finance scene is dominated by Self Help
Groups (SHGs) - Banks linkage Programme, aimed at providing a cost effective
mechanism for providing financial services to the 'unreached poor'. In the
Indian context terms like "small and marginal farmers", " rural artisans" and
"economically weaker sections" have been used to broadly define micro-finance
customers. Research across the globe has shown that, over time, microfinance
clients increase their income and assets, increase the number of years of
schooling their children receive, and improve the health and nutrition of
their families A more refined model of micro-credit delivery has evolved
lately, which emphasizes the combined delivery of financial services along
with technical assistance, and agricultural business development services.
When compared to the wider SHG bank linkage movement in India, private MFIs
have had limited outreach. However, we have seen a recent trend of larger
microfinance institutions transforming into Non-Bank Financial Institutions
(NBFCs). This changing face of microfinance in India appears to be positive in
terms of the ability of microfinance to attract more funds and therefore
increase outreach. In overall terms an organizational structure will help them
achieve more transparence and efficiency |