Microfinance in India

Microfinance in India Impact of different 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 kempt fruit rate of around 7.4% from 2000 to 2012. However, in that location be travel concerns that not all Indians shargon in this smooth growth and that it is an exclusive growth. With 25% of the Indian population alert infra the poverty line and 87% of the poorest households not having admission charge to both form of credit, the Indian economy is a found sports stadium for flourishing microfinance services. Globally, the microfinance market has shot up from macrocosm outlay $12 million in 2003 to $7 one thousand million 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 (200 9) with a portfolio of $2346 million. Microfinance can be defined as the provision of banking services to those sections of society that atomic number 18 unable to access these services from commercial banks. The institutions that provide these financial services are termed as Microfinance Institutions (MFIs). MFIs specialise in providing micro-credit to the running(a) poor with the principal(prenominal) aim of making them self-sufficient. Borrowers are usually subatomic 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) financing needs of their family and will invest in nonparasitic sources of income. It is a common misconception that MFIs are only Non-Government Organisations (NGOs). Non-Banking Finance Companies, bourgeois Banks, Regional Rural Banks and cooperative societies also provide microfinance options. NBFCs bank note for 80% of the total loa n portfolio in this sector. According to Vik! ram Akula, reason Chairman of SKS Microfinance, the total market for microfinance in India...If you want to confirm a full essay, order it on our website: OrderCustomPaper.com

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