Microfinance in India (Paperback)

The recent debates over the high interest rates charged by microfinance institutions and over financial inclusion versus poverty alleviation have raised important questions about the way forward for microfinance institutions. To analyze both sides of the debate the study uses empirical models and tests them using cross-Chapter data from the Indian microfinance sector to find the determinants of yield. The study also uses various methodologies to determine the extent to which operating expenses explain the interest rates charged. In addition, the transparency of MFIs is analyzed. A simple theoretic model of individual and group lending is presented and the social impact of MFIs is examined. The book finds that MFIs are mostly not exploitative. Policy recommendations are made on the basis of the analysis. With all these excusive features, the book is bound to be the first choice of students seeking interest in microfinance.