Microfinance in India

Microfinance in India Impact of various(a) Business Models| Date: 16 August 2011 Introduction India has a diverse economy which encompasses various types of services, market-gardening and modern industries to name a few. India has also averaged a knock-down(a) fruit rate of around 7.4% from 2000 to 2012. However, in that location be travel concerns that not all Indians sh atomic number 18 in this pure growth and that it is an exclusive growth. With 25% of the Indian population keep infra the poverty line and 87% of the poorest households not having gain to both form of credit, the Indian economy is a tiptop sports stadium for flourishing microfinance services. Globally, the microfinance market has shot up from organism outlay $12 million in 2003 to $7 gazillion in 2010, despite various concerns and regulations, the market has a fearsome mountain chain of growth and is expected to grow to $50 billion. In India, there were 22.6 million borrowers (2009) wit h a portfolio of $2346 million. Microfinance can be defined as the provision of banking services to those sections of society that argon unable to access these services from commercial banks. The institutions that provide these fiscal services are termed as Microfinance Institutions (MFIs).

MFIs specialise in providing micro-credit to the works poor with the principal(prenominal) aim of making them self-sufficient. Borrowers are usually little entrepreneurs such as street hawkers, farmers, traders etc. However, in India, borrowers are earlier women, as they are believed to be more cognisant of passing(a) fina ncing needs of their family and will invest ! in self-governing sources of income. It is a common misconception that MFIs are only Non-Government Organisations (NGOs). Non-Banking Finance Companies, temporal Banks, Regional Rural Banks and cooperative societies also provide microfinance options. NBFCs wit for 80% of the total loan portfolio in this sector. According to Vikram Akula, cause Chairman of SKS Microfinance, the total market for microfinance in India...If you want to treasure a full essay, order it on our website: OrderCustomPaper.com

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