Application of an Alternate Framework for Assessing Microfinance Programs’ Contribution to Development: An Empirical Study in <scp>T</scp>amil <scp>N</scp>adu, <scp>I</scp>ndia

Shankar, Savita

doi:10.1002/jsc.2006

Cited by 9 publications

(7 citation statements)

References 28 publications

(23 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…More specifically, we found that organizations are co‐creating microfinance strategies by partnering with technology providers and using crowdfunding, efficient information systems, mobile banking, and credit scoring (Ashta, 2012). Moreover, a multi‐product strategy is being used to include not only other financial services, but also nonfinancial services in order to provide a competitive advantage (Biosca, Lenton, & Mosley, 2014; Shankar, 2015).…”

Section: Research Directionsmentioning

confidence: 99%

“…Microfinance institutional development has been influenced by global pressures, interinstitutional contradictions, and intrainstitutional conflicts in logics (Ashta, 2019). The regulatory support (Britzelmaier, Kraus, & Xu, 2013), the control of corruption, the need for competition, and the use of rating agencies (Halouani & Boujelbène, 2015), credit bureaus (Shankar, 2015), or even “mystery shopping” (Chan & Lin, 2015) can all help in the supervision and development of microfinance organizations. However, inappropriate regulation can push microcredit organizations to increase outreach and inclusion but with a purely commercial logic (Khachatryan & Avetisyan, 2017).…”

Section: Research Directionsmentioning

confidence: 99%

See 1 more Smart Citation

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

View full text Add to dashboard Cite

Lifting the poor from poverty through financial and social inclusion is the ultimate target and raison d'etre of microfinance. As the most recent literature has recognized, microfinance institutions have economically worked well in operating microcredit, but the aim of raising the living standard of their indigent clients has not been generally met. The expected encouragement of entrepreneurship from microcredit is still not detected in the empirical data, let alone women's social integration in working activities. The articles collected in this thematic issue bring new empirical elements of discussion pointing to many aspects of the social divides and the inequalities that plague the emerging countries. This overview article recalls the main questions that are still open and the framework of topics discussed in this thematic issue.

show abstract

Section: Research Directionsmentioning

confidence: 99%

Section: Research Directionsmentioning

confidence: 99%

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

View full text Add to dashboard Cite

show abstract

“…In Tripura, Bandhan MFI (now operating as a bank) is the known MFI that offers financial services in the nontribal region through JLGs. High financial exclusion is also attributed to a lack of FC (Bickel & Mehwald, 2014; Blake & de Jong, 2008; Shankar, 2015). These researchers recognize that FC enhancement is an essential enabler for advancing FI.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

“…Many households still access credit from individual moneylenders even if it is at a high cost, to avoid nonprice barriers (such as attending group meetings and making standardized loan repayment) (National Sample Survey Organisation [NSSO], 2014; Parekh & Ashta, 2018; Ramadorai, 2017). Their exclusion from formal banking and formal MF systems is not only due to the remoteness of their localities and the hilly terrain which makes accessing these services more challenging but also due to the lack of financial capability (FC) of the households in terms of knowledge about such programs, attitudes toward joining those programs, and poor management of their money and resources (Blake & de Jong, 2008; Shankar, 2015). In technical terms, FCs are the abilities of a person or a household to act, that is converting their internal abilities (in the form of assets, goods, income, education, knowledge, skills, and attitude) and external resources (such as physical infrastructures like financial institutions) into financial behavior (actions).…”

Section: Introductionmentioning

confidence: 99%

Can behavioral biases improve the financial capability of microfinance clients in the tribal states of India?

Chidambaranathan

Guha

2020

Strategic Change

View full text Add to dashboard Cite

Financial capability (FC) of the households involved in microfinance (MF) activities is better than those who are not. MF model, especially the traditional informal group structure, provides a platform for financial socialization and hence, it enables to build the FC of its members. Socioeconomic factors and behavioral economic variables significantly influence the level of FC of the households involved in MF activities. While designing FC enhancement programs, one should consider social capital structures and behavioral economic aspects.

show abstract

“…A study in India found that once an individual gains access to microfinance, three kinds of outcomes are possible (Shankar 2015). The first kind of outcome is in the case of MFI borrowers who utilize their loans primarily for their business activity and whose businesses generate sufficient margins after payment of principal and interest.…”

Section: Introductionmentioning

confidence: 99%

Bridging the 'Missing Middle' between Microfinance and Small and Medium-Sized Enterprise Finance in South Asia

Shankar

2016

SSRN Journal

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractWith maturity in the microfinance market in South Asia, it is observed that some microfinance members' needs grow beyond the boundaries of traditional microfinance group loans. In addition, there are other small enterprises whose needs are not met by microfinance institutions or commercial banks. It is important to address the financing needs of these firms given their employment potential, and hence this issue is on the policy agenda of the three countries studied in this paper: India, Bangladesh, and Pakistan. Drawing on interviews with chief executives of lending organizations and desk research, this paper reviews the options currently available to such firms in each country, the lending models being used, and recent policy initiatives to promote them. Based on the country experiences, the features of successful lending models for this segment and the specific challenges that need to be addressed are summarized and conclusions drawn.

show abstract

Application of an Alternate Framework for Assessing Microfinance Programs’ Contribution to Development: An Empirical Study in Tamil Nadu, India

Abstract: Microfinance institutions can enhance their contribution to financial inclusion promotion by expanding their suite of financial services, participating in a credit bureau, and providing portability of accounts, greater flexibility in operation, and financial literacy training.

Cited by 9 publications

References 28 publications

Microfinance and financial inclusion: Challenges and opportunities

Microfinance and financial inclusion: Challenges and opportunities

Can behavioral biases improve the financial capability of microfinance clients in the tribal states of India?

Bridging the 'Missing Middle' between Microfinance and Small and Medium-Sized Enterprise Finance in South Asia

Contact Info

Product

Resources

About