ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Microfinance Institutions

Evidence from Bundelkhand

The status of microfinance in the Bundelkhand region of Uttar Pradesh is explored through a primary survey. The relationship between socio-economic development and loan amounts, reasons for borrowing, instalment amounts, interest rates, and borrower affordability is examined. There is an urgent need for a more effective financial system in the region as a majority of people still resort to informal moneylenders for their financial needs. The government and microfinance institutions need to work together to provide better services for the region.

 

Microfinance is a policy reform strategy that aims to improve the well-being of customers (Ahamad et al 2020). It entails providing financial services to low-income consumers through organisations in areas where the market does not supply enough services (Ahamad et al 2016). The World Bank defines microfinance as “the provision of modest loans to assist the poor and their families in engaging in production activities or developing microenterprises” (Helms 2004). Microfinance institutions (MFIs) offer services such as micro-savings and insurance. Many MFIs also provide social and mediation services such as skill training and education, institutional support, and health services.

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Published On : 15th Mar, 2024

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