Download or read book Cons of Microfinance A Case Study of Andhra Pradesh written by Yousuf Daas and published by . This book was released on 2019-08-03 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2018 in the subject Business economics - Investment and Finance, grade: 14, Leuven Catholic University, course: Economic Anthropology, language: English, abstract: This paper critically explores the disadvantages associated with the microfinance sector, especially among the poor in the society who hold to the perception that loans can provide their exit to poverty. The piece of writing will primarily focus on the case study of the microcredit borrowers in Andhra Pradesh, India. A brief overview of the microfinance concept will be provided in the first section. The second part will incorporate the description of the case study context in regards to the disadvantages of microfinance. The major cons that will be comprehensively examined in the paper, include the rising death cases among borrowers due to financial stress, deepening poverty, high-interest rates, in-dignifying the borrowers, and overall decline in the community cohesiveness. These cons contributed to the crisis of Andhra Pradesh which rose to become a reference point as a catastrophic financial intervention of the century. The paper concludes by suggesting a community-based approach to lending that ties the level of credit to sustainability and viability of a micro venture.
Download or read book When the Poor Became Bankable written by Mohan Shriya and published by . This book was released on 2011 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The success of Grameen Bank, founded by Muhammad Yunus, had led to the sprouting of microfinance institutions in India. The Grameen model provided financing support for income generation in remote areas where banks had been tardy in providing service and had historically seen high repayment rates. However, the microfinance sector in India underwent a change in its model in August 2009 when India's largest private microfinance institution (MFI) raised funds from the public through an IPO, promising high rates of return. While this was condemned as commercialization of microfinance, the market-oriented model aimed to help more poor people by tapping the large pool of investor capital rather than the limited pool of donor or subsidized funds. The situation reached a crisis in October 2010 when there was a spate of farmer suicides in Andhra Pradesh, the microfinance capital of India. More shocking facts about the industry such as the exorbitantly high interest rates, intense competition among MFIs which had led to multiple loans being offered for consumption in addition to income generation and tight repayment schedules, came to light. The group-lending system which enforced repayment through social pressure had exacerbated the situation for women caught in debt traps. The Reserve Bank of India, the country0́9s central bank had to intervene urgently. This case raises questions of ethics, profit models for social businesses and regulation through government intervention.
Download or read book The Andhra Pradesh Microfinance Crisis and American Payday Loans written by Eric Palmer and published by . This book was released on 2016 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microcredit, a non-profit lending approach that is often championed as a source of women's inclusion and empowerment, has in the past decade been followed by microfinance, a for-profit sibling of a different temperament. Microfinance in India is now in turmoil, precipitated by legislation in the state of Andhra Pradesh that has encouraged withholding of payment that has frozen the market. This presentation surveys the crisis up to the date of the IDEA conference, and suggests why it reached such a state. The crisis has structural parallels to the global financial crisis of 2008: both arose through lending practices that presented misalignments among the interests of lending agents, and both led to a bubble in the valuation of a market that burst when the borrowers could no longer pay. In the case of Andhra Pradesh, the market lies in the ability of poor women to sustain debt, which now averages over a year's family income spread across ten concurrent loans. The problem is not unique: Microfinance is beginning to show its kinship to exploitative lending practices that have developed in the global north over the past two decades.
Download or read book Microfinance in India written by Prabhu Ghate and published by SAGE Publications. This book was released on 2008-11-11 with total page 201 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance in India: A State of the Sector Report, 2007 is one in a series of annual reports on the microfinance sector in India. It is a comprehensive one-stop document that provides a holistic view of the sector, providing a detailed analysis of its status and future. It highlights recent developments under each of the two main models of microfinance in India -the SHG and MFI models. Most significantly, it engages with issues of topical interest such as the microfinance bill pending in parliament in a balanced and objective manner, and focuses on policy issues that need the attention of decision makers. The book carries a statistical appendix which provides essential data on the sector, and strengthens its utility as a reference document. It will be of interest to various players in the sector including practitioners, bankers, insurance companies, venture capitalists, regulators, donors and academics.
Download or read book Microfinance Challenges written by Isabelle Guérin and published by . This book was released on 2005 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contributed papers presented earlier in a conference.
Download or read book The Future of Microfinance written by Ira W. Lieberman and published by Brookings Institution Press. This book was released on 2020-06-30 with total page 493 pages. Available in PDF, EPUB and Kindle. Book excerpt: A major source of financing for the poor and no longer a niche industry Over the past four decades, microfinance—the provision of loans, savings, and insurance to small businesses and entrepreneurs shut out of traditional capital markets—has grown from a niche service in Bangladesh and a few other countries to a significant global source of financing. Some 200 million people globally now receive support from microfinance institutions, with most of the recipients in the developing world. In the beginning, much of the microfinance industry was managed by non-governmental organizations, but today the majority of these institutions are commercial and regulated by governments, and they provide safe places for the poor to save, as well as offering much-needed capital and other financial services. Now out of infancy, the microfinance industry faces major challenges, including its ability to deal with mobile banking and other technology and concerns that some markets are now over-saturated with microfinance. How the industry deals with these and other challenges will determine whether it will continue to grow or will be subsumed within the larger global financial sector. This book is based on the results of a workshop at Lehigh University among thirty-four leaders in the industry. The editors, working with contributions from more than a dozen leading authorities in the field, tell the important story of how microfinance developed, how it has met the needs of hundreds of millions of people, and they address key questions about how it can continue to meet those needs in the future.
Download or read book Microfinance Debt and Over Indebtedness written by Isabelle Guérin and published by Routledge. This book was released on 2013-10-15 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although microcredit programmes have long been considered efficient development tools, many forms of debt-induced distress have emerged in their wake. This has brought to light the problem of over-indebtedness, a topic which has been previously underexplored in the literature. This new book, from a group of leading scholars, explores the manifestations, scale, and economic and social implications of household over-indebtedness in areas conventionally considered as financially excluded. The book approaches debt not only as a financial transaction, but also as a form of social bond, and offers a socioeconomic analysis of over-indebtedness. The volume puts forward a broad definition of over-indebtedness, highlighting its situational and semantic complexity and diversity. It provides a close analysis of local conceptions of debt and over-indebtedness, highlighting frameworks of calculation and the constant renegotiation of their boundaries. On top of this, it looks far beyond microcredit to examine all the financial practices that individuals juggle. The volume argues that over-indebtedness has more to do with social inequalities than financial illiteracy, and should therefore be understood in the light of global trends of financialization. It also reveals the ambiguity of "financial inclusion" policies, and in many respects questions the actions of new credit providers. This book will be valuable reading for students, researchers and policy makers interested in microfinance and development issues.
Download or read book School Meals Educational Achievement and School Competition written by Christel Vermeersch and published by World Bank Publications. This book was released on 2005 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Vermeersch and Kremer examine the effects of subsidized school meals on school participation, educational achievement, and school finance in a developing country setting. They use data from a program that was implemented in 25 randomly chosen preschools in a pool of 50. Children's school participation was 30 percent higher in the treatment group than in the comparison group. The meals program led to higher curriculum test scores, but only in schools where the teacher was relatively experienced prior to the program. The school meals displaced teaching time and led to larger class sizes. Despite improved incentives, teacher absenteeism remained at a high level of 30 percent. Treatment schools raised their fees, and comparison schools close to treatment schools decreased their fees. Some of the price effects are caused by a combination of capacity constraints and pupil transfers that would not happen if the school meals were ordered in all schools. The intention-to-treat estimator of the effect of the randomized program incorporates those price effects, and therefore it should be considered a lower bound on the effect of generalized school meals. This insight on price effects generalizes to other randomized program evaluations. This paper--a product of the Poverty Reduction and Economic Management 2, Africa Technical Families--is part of a larger effort in the region to increase our understanding of the impact of programs aimed at reaching the Millennium Development Goals.
Download or read book Microfinance India written by N Srinivasan and published by SAGE Publications Pvt. Limited. This book was released on 2009-11-20 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This series of annual reports on the microfinance sector in India which seeks to document developments, clarify issues, publicize studies, stimulate research, identify policy choices, generate understanding, and enhance support for the sector. It highlights recent developments under each of the two main models of microfinance in India – the SHG and MFI models. The book highlights recent developments in Self Help Groups (SHGs) and SHG Bank Linkage Programme (SBLPs), and focuses on microfinance with regard to the investment scenario in India.
Download or read book Microfinance India written by N. Srinivasan and published by SAGE Publications Pvt. Limited. This book was released on 2011-12-28 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microfinance India: State of the Sector Report 2011 presents the growth of the microfinance sector in India in its entirety. It offers in-depth, well-researched and thoroughly analyzed evidence on how the sector has made an impact at various levels of the economy and society. The report collects information from authoritative sources, studies and reports on the sector and field studies on specific developments of interests. It also brings perspectives from key policy makers through exclusive interviews. Highlighting on more topical themes, this year's report begins with an overview of the microfinance sector, which faced significant problems during 2010–11. It then evaluates the performances of the SHG and MFI models and discusses thematic issues such as social performance management and financial inclusion in detail.
Download or read book Handbook on Microfinance and Innovative Case Studies written by Medha Dubhashi and published by Allied Publishers. This book was released on 2022-02-16 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is a long standing notion of the banking sector that the “poor are not credit worthy and hence not bankable” on the other hand, the self-help group bank linkage program is the largest microfinance program in the world. The Grameen bank has illustrated the way to lend to the poor. It has shown that lending to the SHGs is a viable proposition. The book is an easy to read handbook useful for students, academicians and practitioners. It has illustration of innovative cases which adds to the pedagogy of case study in teaching.
Download or read book What s Wrong with Microfinance written by Thomas W. Dichter and published by . This book was released on 2007 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: The reasons for this success are obvious.
Download or read book Microfinance in Africa written by S. Rajagopalan and published by . This book was released on 2009 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa is home to some of the poorest and vulnerable populations in the world. The ten poorest countries in the world are in Africa. Sub-Saharan Africa is the region with the highest incidence and greatest depth of poverty in the world. Fewer than one in five adults in Africa has access to the services of a formal or semi-formal financial institution. Microfinance in Africa is growing, though. A broad range of diverse institutions offer financial services to the poor and low-income clients in Africa. These include non-governmental organizations, non-banking financial institutions, cooperatives, credit unions, rural banks, Rotating Savings and Credit Associations (ROSCAs), postal financial institutions and an increasing number of commercial banks. Increasingly, technology is being used to expand microfinance outreach mobile phone banking is one such example. This book provides an overview of the microfinance sector in Africa, reviews the performance and impact of microfinance institutions in the region, and outlines some of the opportunities and challenges that African microfinance has on hand.
Download or read book Why Doesn t Microfinance Work written by Milford Bateman and published by Zed Books Ltd.. This book was released on 2010-06-10 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since its emergence in the 1970s, microfinance has risen to become one of the most high-profile policies to address poverty in developing and transition countries. It is beloved of rock stars, movie stars, royalty, high-profile politicians and ‘troubleshooting’ economists. In this provocative and controversial analysis, Milford Bateman reveals that microfinance doesn’t actually work. In fact, the case for it has been largely built on hype, on egregious half-truths and – latterly – on the Wall Street-style greed of those promoting and working in microfinance. Using a multitude of case studies, from India to Cambodia, Bolivia to Uganda, Serbia to Mexico, Bateman demonstrates that microfi nance actually constitutes a major barrier to sustainable economic and social development, and thus also to sustainable poverty reduction. As developing and transition countries attempt to repair the devastation wrought by the global financial crisis, Why Doesn’t Microfinance Work? argues forcefully that the role of microfinance in development policy urgently needs to be reconsidered.
Download or read book Women s Empowerment and Microcredit Programmes in India written by Annabel Dulhunty and published by Taylor & Francis. This book was released on 2023-08-21 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: Women’s Empowerment and Microcredit Programs in India examines the value of microcredit-based self-help groups (SHGs) for women in India and provides an alternative model for women’s empowerment programming. The microcredit sector continues to boom globally - with private investors, governments and multilateral financial institutions all investing substantial amounts in self-help group programming. Nowhere is this more evident than in India, where the industry has further been deregulated in recent years. Much of the rationale for increased investment in microcredit is based on the idea that it improves ‘women’s empowerment’. But is this true? Researchers have fiercely debated the value of microcredit programs for women, with some arguing that it is exploitative, and others contending that it is empowering. This book provides new insights into women’s empowerment and microcredit programming, elaborating on the themes of power, dignity, mobility and solidarity. It takes a nuanced view of the complexities surrounding self-help group programming and women’s empowerment and argues that the model of microcredit self-help group programming is key to whether it helps or harms women. By focusing on the experiences and voices of microcredit self-help group members in West Bengal, India, this book elaborates on the idea of microcredit models existing on a continuum, from ‘smart economics’ to more holistic feminist versions of programming. It will be of interest to scholars in development studies, anthropology, sociology, gender studies and public policy and Asian Studies.
Download or read book Microfinance in India written by Tara S. Nair and published by Taylor & Francis. This book was released on 2018-10-24 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume presents a comprehensive analysis of microfinance initiatives in India. Through substantive field research and case studies ranging across the country, it examines Indian microfinance within its distinct socio-economic realities — the role of women, financial inclusion, rural entrepreneurship, and innovation — its interactions with multiple institutions, the challenges, as well as future directions.
Download or read book The Political Economy of Financial Regulation written by Emilios Avgouleas and published by Cambridge University Press. This book was released on 2019-01-31 with total page 531 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the law and policy of financial regulation using a combination of conceptual analysis and strong empirical research.
