Microfinance In India: Built On Sales Targets or Loyal Clients?
by Graham Wright
May 11, 2010
1 min
In this note gives an insight on MFIs need to diversify the range of services they offer to encompass insurance, savings and even remittance services – probably through m-banking platforms.
The core market for MFIs is the very weaker sections as defined by the priority sector lending requirements of the Reserve Bank of India. As such, MFIs offer a tremendous opportunity for the state, (which wants to see these vulnerable groups “financially included” with access to a range of financial services, particularly credit) and to the banks, (which need to achieve their priority sector lending requirements). Strong relationships and in-depth understanding of the needs of clients are key to addressing the problems of multiple borrowing and over-indebtedness. MFIs will need to diversify the range of services they offer to encompass insurance, savings and even remittance services – probably through m-banking platforms.
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