We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
A Study of Contributory Factors Impacting the Effectiveness of Microfinance as a Tool of Inclusive Growth.
- Authors
Sinha, Sanjay
- Abstract
Microfinance means transaction of financial services with small amount of capital. Microfinance as a tool of alternative finance can broadly be understood as instruments that can bring financial inclusion. Microfinance includes Microcredit, Microinsurance and Microsaving. Microcredit refers to disbursal of loans to the beneficiaries in small denominations. The success of Grameen Bank of Bangladesh founded Prof Mohammed Yunus is an excellent example of turnaround that microcredit can bring in the lives of millions of people who are the bottom of the pyramid. In this method of disbursal of microcredit as adopted by Mohammed Yunus lead to the formation of Grameen Bank. Microcredit assists capacity building of the people and acts as an instrument for the eradication of poverty. Micro Credit, Micro Insurance and Micro Savings are instruments of Microfinance. These three instruments are used for the achievement of inclusive growth. However, only these instruments may not be enough to bring about inclusiveness rather comprehensive approach is needed. The approach must adopt multi-level, multi-pronged strategies which invariably needs to include government, Micro Finance Institutions (MFIs), Regulators and Society. All of the them will have to play their roles to bring a transformation in the lives of vast majority of population who are at the bottom of the economic pyramid. The author of this paper proposes a combination of four factors viz product, Regulations, Technology and Society put together makes microfinance effective tool of inclusive growth. The author has identified these contributory factors as Product Framework, Regulatory Framework, Technological Framework and Societal Framework.
- Subjects
MICROFINANCE; ECONOMIC development; BENEFICIARIES
- Publication
Wealth: International Journal of Money, Banking & Finance, 2018, Vol 7, Issue 2, p26
- ISSN
2277-9388
- Publication type
Article