An analysis of microfinance and its delivery models in India

Priya Sharma


Mohammad Yunus while studying about lives of poor entrepreneurs in his native country Bangladesh stumbled upon the idea of microcredit. Microfinance has since been considered as a strong and effective instrument for ensuring development. Microfinance is the practice of giving out loans to poor at minimal condition to help them break out of the shackles of poverty.
There are different models of microfinance to serve the poor people like Grameen Bank model, Self Help Group bank linkage programme model, Microfinance Institution model, Bank correspondent model, and Bank partnership model. At present, self help group Bank Linkage programme model and the Micro Finance Institution model for delivery of Microfinance in India is working on large scale as compare to other models. Self help group Bank Linkage programme model is recognized as largest Micro finance programme all over the world in terms of coverage. This paper attempts to focus on status of Microfinance and its delivery model prevailing in India.
Keywords: Microfinance, Self help group, Microfinance models, Microfinance institutions


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ISSN : 2251-1571