Wednesday, October 15, 2008
Microfinance in India
Its almost 25 years since Microfinance taken birth in India and the concept started by Professor Mohammad Yunus (Grameen Bank) in Bangladesh. The Microfinance field has since spread with adaptation and evolution of ideas to various countries and context.With a large portion of the world’s poor, India is likely to have a large potential demand for microfinance. For this reason, It makes sense to consider the changing face of microfinance in India, in order to shed light on comparable changes in the field all over the world. With all the excitement about the prospects of the field to contribute to poverty alleviation and the integration of the world’s poor into the rapidly evolving global market system, the Consultative Group to Assist the Poorestthe Consultative Group to Assist the Poorest (CGAP) estimates that microfinance probably reaches fewer than 5% of its potential clients.
India is home to a growing and innovative sector microfinance.