Microfinance And Financial Inclusion Microfinance

4. Microfinance and Financial Inclusion: Microfinance programmes are intended to reach poor segments of society as they lack access to formal financial services. It, therefore, holds greater promise to further the agenda of FI as it seeks to reach out to this excluded category of population. India has adopted the Bangladesh’s model in a modified form. The Apex-Bank NABARD started ‘SHG bank linkage programme’ during the last decade of by-gone century, is by far the major programme initiative without parallel in any parts of the world for achieving the FI. The programme has demonstrated across the country its effectiveness in linking banks with excluded category of poor segments of population. In this process role of NGOs in development is quite pronounced in providing the last mile connectivity as enablers and catalyst between the SHGs and Village level co-operatives/banks. This is also supplemented by the MFIs delivering credit. To alleviate poverty and to empower particularly women, the micro-finance ha s emerged as a powerful instrument to serve the objective of FI in India. With availability of micro-finance, self-help groups and credit management groups have also started in India. More importance is being given to SHGs, since the micro lending to the group rather than individual borrowers is more successful and in the process also making it to reach the goal of FI. All the members of the group are equally benefitted and also the repayment by each member is guaranteed byShow MoreRelatedEssay On Microfinance Sector836 Words   |  4 Pagesnumbers highlight the extent of financial exclusion.2 Banks seem to have taken note of these realities and are adopting new technologies and leveraging partners to tap the underserved. This has resulted in increased financial inclusion in rural areas, especially among those who are opening bank accounts for the first time. Still, despite the best efforts of banks, many are yet to be included in the formal financial system through access to forma l credit. Microfinance institutions (MFIs) have takenRead MoreIslamic Microfinance And Islamic Institutions1310 Words   |  6 Pagesto Sharia (Islamic law) compliant financial tools. According to CGAP 2013, there are around 255 Islamic microfinance providers in the world (Figure 1 and 2). Studies conducted in Bangladesh, Sudan and Indonesia show that Islamic microfinance is growing at much faster rate than conventional microfinance. TechNavio forecasts the market to grow at a CAGR of 19.7 percent over the period 2013-2018. There is a huge opportunity for the growth of Islamic Microfinance in Pakistan as well. This sector isRead MoreRole of Microfinance:- The micro credit of microfinance program was first initiated in the year600 Words   |  3 Pages Role of Microfinance:- The micro credit of microfinance program was first initiated in the year 1976 in Bangladesh with promise of providing credit to the poor without collateral , alleviating poverty and unleashing human creativity and endeavor of the poor people. Microfinance impact studies have demonstrated that : †¢ Microfinance helps poor households meet basic needs and protects them against risks. †¢ The use of financial services by low-income households leads to improvements in household economicRead MoreThe Structure Of The Banking Industry1608 Words   |  7 Pagesthe State Bank of Vietnam (SBV) it has now expanded to several players and has recently enabled MFIs to be part of the formal financial system. However, despite these achievements, there are still challenges that linger and financial inclusion remains an issue. 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Data collection was done from the Credit rating reports Microfinance sector reports. Sources of Data: Secondary data for the study Sources: †¢ M-CRIL (Micro Credit Rating International Ltd.) †¢ CRISIL Ratings †¢ Microfinance India, State of the sector reports Research Tool: MS-Excel Statistical tools CHAPTER 4 DATA ANALYSIS Analysis of the funds used by the MFIs for different purposes Figure 1: Use of funds byRead MoreThe Communist Party Of Vietnam Essay983 Words   |  4 Pagesaccountable (DFAT 2016). Recent political developments in Vietnam has seen the end of 12th National Congress elections held every 5 years and resulted in the continuation of Nguyen Phu Trong as the general secretary (EIU 2016). In terms of the microfinance industry, there are two government bodies that are mainly responsible for the legal, regulatory and supervisory environment of the sector. The State Bank of Vietnam (SBV), founded in October 26, 1961,is a ministry within the government responsibleRead MoreDeveloping A Small Enterprises And Micro Leasing1804 Words   |  8 PagesMicrofinance provides the basic financial services to low income people, who have lack to access to bank related services. This includes credit for instance, micro saving’s, micro insurance and micro leasing. The main focus of European Union is on microcredit because there is only limited experience with micro savings and micro leasing exists, it is due to the strict regulation, for instance with regard to deposit taking. The microcredit is the extension of very small loans to those who are in povertyRead MoreA Market Based Approach For Community Development Essay1400 Words   |  6 Pagessocio-economic, and political context that our country is in. A market-based approach provides a mechanism to define relationships and allocate economic resources to create systemic change within communities. increasing opportunities for social inclusion and economic sustainability Social Sustainability 1. True community development exemplifies the relationship between the local actor and the interconnectedness that needs to exist to accomplish change. Market based approaches to community developmentRead MoreFactors Hindering Financial Inclusion in Uganda: A Case Study of Kamuli District1618 Words   |  7 PagesFACTORS HINDERING FINANCIAL INCLUSION IN UGANDA: A CASE STUDY OF KAMULI DISTRICT. CHAPTER ONE: INTRODUCTION Background to the Study Uganda’s Vision 2040 highlights access to finance as one of the barriers among others that are affecting the competitiveness of the economy. Most individuals and firms access credit from informal sources. One of the reasons for the limited access to credit is the low level of domestic savings which affects the ability by institutions to offer long term finance. As such