Mainstreaming Microfinance

While NGOs as microfinance institutions have had some success in facilitation and social intermediation, there is little evidence of the fact that they have had much success in poverty reduction. In this article, the author recommends the development of a symbiotic relationship between NGOs and banks, with the former efficiently utilising their strengths in social engineering and the latter focusing on pure financial intermediation. Such a strategic partnership, the author feels, will help achieve the otherwise elusive targets of outreach to the poor and financial sustainability.