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Microfinance – Challenges and Response

This note briefly discusses four major concerns/opinions voiced by different stakeholders, namely the promoters, the beneficiaries and the general public.

This note briefly discusses four major concerns/opinions voiced by different stakeholders, namely the promoters, the beneficiaries and the general public. First is the justification for a new breed of financial institutions in order to meet the varied financial needs of the poor. Secondly, the cost of providing financial services by MFIs which are largely dependent on nature of services they provide (doorstep) and the cost of capital for them. Third concerns are on the nature and types of services they could provide that includes “plus” such as insurance and remittances which adds to their administration cost. The final one is on getting trained human resources, who have understanding of both banking as well as social development.

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jayan-nair

Professor V.S. Vyas