Professional Documents
Culture Documents
MICROFINANCE
ABOUT THE COURSE
"MICROFINANCE IS NOT A CHARITY. IT IS A WAY TO EXTEND THE SAME RIGHTS AND SERVICES TO LOW-INCOME
HOUSEHOLDS THAT ARE AVAILABLE TO EVERYONE ELSE. IT IS RECOGNITION THAT POOR PEOPLE ARE THE
SOLUTION, NOT THE PROBLEM.“
• Microfinance is one of those small ideas that turn out to have enormous implications.
• Microfinance successes force economists to rethink assumptions about how poor
households save and build assets, and how institutions can overcome market failures.
• Microfinance is important, interesting and challenging in the contemporary period
especially for a developing country like India.
• Microfinance course deals with the basic fundamentals of microfinancing, understanding
its supply and regulation, related credit lending theory and risks associated with
microfinance institutions.
LEARNING OBJECTIVE
PLOs assessed
Evaluation tool Marks
Quiz 15
Attendance 5
Individual Assignment 15 PLO 4a
Presentations 15
Mid Term Exam 20 PLO 4a
End Term Exam (EQ) 30 PLO 4a
Total 100
MODULE - 1
TOPICS COVERED– MODULE 1
• An Introduction to Microfinance,
• Microfinance Debates,
• Approaches in Microfinance Delivery,
• Mobile telephony,
• Internet and other technology solutions for distributing MFI products
MODULE - I1
TOPICS COVERED– MODULE I1
• Microfinance Models,
• MFI Models and Loan products,
• MFI group lending models,
• MFI individual lending models,
• MFI loan products and related issues
MODULE – III
TOPICS COVERED– MODULE I1I
• Government Initiatives,
• Innovations in Microfinance,
• Role and Scope for Formal Financial Institutions and Corporate,
• Legal Forms – Covers Issues in Transformation
MODULE – V
TOPICS COVERED– MODULE V
• Microfinance is defined as the process of providing loans, credit, savings and all other
necessary financial services and products to individuals who are extremely poor to get
access to regular sources of finance such as banks or other financial institutions.
• Major Stakeholders---Poor
• The methodology to measure poverty, as devised by Y K Alagh, in 1979 has been
improvised by the Expert Group (Lakdawala) in 1993 and then by the Expert Group
(Tendulkar) in 2009, and finally by the Planning Commission Expert group Report (C.
Rangarajan) in 2012.
POVERTY: FACTS AND FIGURES
DIFFERENCES BASED ON THE ESTIMATES
• Suresh Tendulkar Committee- Rs 27 for rural India and Rs 33 for urban India (Report Submitted in the year
2009).
• C. Rangarajan Committee- Rs 32 in rural areas and Rs 47 in urban areas (Report Submitted in the year 2012).
• Source- http://planningcommission.nic.in/reports/genrep/pov_rep0707.pdf
HOW THE POOR MANAGE FUNDS?
• Portfolios of the Poor: How the World's Poor Live on $2 a Day (Princeton University Press, 2009) tackles the
fundamental question of how the poor make ends meet. Over 250 families in Bangladesh, India, and South
Africa participated in this unprecedented study of the financial practices of the world's poor.
• These households were interviewed every two weeks over the course of a year, reporting on their most
minute financial transactions. This book shows that many poor people have surprisingly sophisticated
financial lives, saving and borrowing with an eye to the future and creating complex "financial portfolios"
of formal and informal tools.
• Indispensable for those in development studies, economics, and microfinance, Portfolios of the Poor will
appeal to anyone interested in knowing more about poverty and what can be done about it.
ACTIVITIES TO THE STUDENTS ?
• Write the book review of Portfolios of the Poor: How the World's Poor Live on $2 a Day
(Princeton University Press, 2009).