Microfinance Interventions in India: Challenges and Prospects

Shagufta Sheikh

Abstract
The Indian economy has grown rapidly over the past decade, with real GDP growth averaging 6% annually. Social indicators, such as poverty, literacy and infant mortality have also improved during the last ten years. Despite this somewhat positive outlook, over 300 million Indians are classified as living below the poverty line. The Government of India continues to make huge investments in rural India, in an effort to improve the quality of life of the rural masses. Micro finance today only reaches around 20 million people through 7000 MFIs. In India about 240 million people are in need for micro finance. From the perspective of developing effective strategies and programme management, the government supports focused initiatives in two broad areas: (a) Land and Water Development and (b) Micro finance. This paper attempts to evaluate the governments efforts towards this objective. The major thrust areas are: main challenges for micro finance schemes, contribution of SIDBI, NABARD, and NGOs in this regard etc. This paper will provide an opportunity for various organizations working in this area to be aware of each other, so that an effective strategy for micro finance programmes can be planned. It will facilitate the objective of sustainable development. KEY WORDS: - Microfinance, SIDBI, NABARD, Commercial Banks, MFIs, NGOs. 1) INTRODUCTIONSince India resides in her villages; it comes as no surprise that

more than three fourths of the 'below the poverty line' population is based in rural areas. Improving the quality of their life would require meaningful funding, besides appropriate measures to improve the health and socio-economic conditions of the rural people. In

view of this backdrop, enhancing rural livelihoods remains a key test of the State, besides continuing to be a major theme in the governments grant portfolio. Poor people dont have access to bank loans. Private moneylenders charge very high interest rates. Many people believe that within two to three years of their first loan, people come above the poverty line. Micro finance is thus regarded as the dignified way of crossing the poverty line. MICRO FINANCE Micro credit came to prominence in the 1980s, although early experiments date back 30 years in Bangladesh, Brazil and a few other countries. Theoretically microfinance encompasses any financial service used by poor people, including those they access in the informal economy, such as loans from a village moneylender. Technically, micro finance is defined as provision of thrift, credit and other financial services and products of very small amounts to the poor in rural areas, semi-urban and urban areas. Any one availing micro-finance has to engage in some productive activities that will generate some income. Micro Finance programmes extend small loans to very poor people for self-employment projects. Key principles of microfinance Key principles of microfinance were developed in 2004 by Consultative Group to Assist the Poor (CGAP) and endorsed by the Group of Eight leaders at the G8 Summit on June 10th, 2004. Among the key principles, summarizing a century and a half of development practice, are the following: 1) Poor people need a variety of financial services, not just loans. 2) Micro finance can pay for itself, and must do so if it is to reach very large numbers of

poor people. 3) Micro finance is about building permanent local financial institutions. 4) The job of government is to enable financial services, not to provide them 5) The key bottleneck is the shortage of strong institutions and managers. 2) Different non-government organizations (NGOs), self help groups (SHGs) working in the field of micro finance: In India, there exist a variety of micro finance organizations in government as well as non-government sectors. Leading national financial institutions like the Small Industries Development Bank of India (SIDBI), the National Bank for Agriculture and Rural Development (NABARD) and the Rashtriya Mahila Kosh (RMK) have played a significant role in making micro credit a real movement. There are a few exceptions like PRADAN, ICECD, MYRADA, and SEWA etc. who have been successful in replicating their experiences in other parts of the country and act as Resource Organizations. Self-Employed Women's Association (SEWA) SEWA is a trade union registered in 1972. It is an organization of poor, self- employed women workers. SEWAs main goals are to organize women workers for full employment. Full employment means employment whereby workers obtain work security, income security, food security and social security (at least health care, child care and shelter). SEWA organizes women to ensure that every family obtains full employment. Supportive services like savings and credit, health care, child car, insurance, legal aid; capacity building and communication services are important needs of poor women.

BASIX is a new generation livelihood promotion institution established in 1996, working with over 436,807 households in 70 districts in the states of Andhra Pradesh, Karnataka, TamilNadu, Orissa, Jharkhand, Maharashtra, Madhya Pradesh, Rajasthan, Bihar, Chattisgarh, West Bengal, Delhi and Assam. Its mission is to promote a large number of sustainable livelihoods, including for the rural poor and women, through the provision of financial services and technical assistance in an integrated manner. BASIX will strive to yield a competitive rate of return to its investors so as to be able to access mainstream capital and human resources on a continuous basis. The corporate structure of BASIX comprises a range of companies to address a diverse set of tasks: Bhartiya Samruddhi Investments and Consulting Services Ltd (BASICS Ltd), the holding company, through which equity and debt investments are made in the group companies. Bhartiya Samruddhi Finance Ltd (Samruddhi), an RBI registered NBFC, owned by major financial institutions and engaged in micro-credit and retailing insurance and providing technical assistance services to some of its borrowers. Krishna Bhima Samruddhi Local Area Bank Ltd, an RBI licensed bank, providing micro-credit and savings services in three districts. Indian Grameen Services (IGS), a section 25, not-for-profit Company engaged in research and development and training related to livelihoods. Sarvodaya Nano Finance Ltd (Sarvodaya), an RBI registered NBFC, owned by womens self-help groups, and managed by BASICS Ltd.

SKS Micro finance empowers the poor to become economically self-reliant by providing financial services in a sustainable manner. Launched in 1998, SKS having provided over $432 million and has maintained loans outstanding of $182 million in loans to over 1,45,000 women members in poor regions of India. Borrowers take loans for a range of income-generating activities, including livestock, agriculture, trade (such as vegetable vending), production (from basket weaving to pottery) and new age businesses (Beauty Parlor to photography. Its NGO wing SKS foundation runs the Ultra Poor Program. SKS currently has 631 microfinance branches in 15 states across India In the last year alone, SKS Microfinance has achieved nearly 170 % growth, with 99% on-time repayment rate. RMK Rashtriya Mahila Kosh: The most prominent national level micro-finance apex organization providing micro-finance services for women in India is the National Credit Fund for Women or the Rashtriya Mahila Kosh. The National Credit Fund for Women or the Rashtriya Mahila Kosh (RMK) was set up in March 1993 as an independent registered society by the Department of Women & Child Development in Government of Indias Ministry of Human Resource Development. The office of the Kosh is situated in New Delhi. The Kosh does not have any branch offices. it acts as a wholesaling apex organization for channelising funds from government and donors to retailing intermediate microfinance organizations(IMOs). ASA: The Activists for Social Alternatives (ASA) is a not-for-profit non-governmental organisation (NGO) registered as a public charitable trust, working for the development of poor in the drought prone, poverty ridden area of central Tamilnadu (TN). ASA started its operations in 1986 in Marungapuri block with the objective of addressing the rights of the downtrodden and the exploited, most of whom belonging to the Dalit community.

ASA formed Sanghas and/or societies of such people and built sustainable institutions out of such groups through education, skill based training and capacity building and lobbying and advocacy. Watershed was the entry point activity during the initial years. BISWA: Bharat Integrated Social Welfare Agency (BISWA) was established as a philanthropic organization in 1994. In pursuance of its objectives, in later stages it has incorporated various means and methods to achieve desirable results. Promotion of Self Help Groups (SHGs), extending Micro-finance, encouraging Micro-enterprise, ensuring social justice for disabled, socio-economic rehabilitation of leprosy cured persons, creating avenues for alternative livelihood for poor have been adopted since a long time and have proven to be effective tools for poverty alleviation. Bandhan meaning Togetherness offers microfinance services to poor women in Indias state of West Bengal. Founded by Mr. Chandra Shekhar Ghosh in November 2000, Bandhan literally helps its clients work their way out of poverty. Bandhan offers micro credit loans to self-employed women living in both rural and urban areas of West Bengal. Their average client earns less than $46 a month and holds less than half an acre of land. Bandhan is Indias flagship microfinance institution (MFI) for ASA Bangladeshs lending methodology commonly referred to as an individual lending methodology. MFI Micro credit Foundation of India is a not-for-profit Section 25 Company in TamilNadu dedicated to promoting entrepreneurship and community level action in rural areas as a means to sustainable economic prosperity. Today MFI works primarily with women. Through its field staff, MFI helps them form Self Help Groups (SHGs), trains

them in good financial practice, facilitates access to micro credit loans, equips them with business skills and facilitates access to new markets for their products. SAADHANA is a non- profit organization established in the year 2001 to reach out to the urban and rural poor women with the specific mandate to catalyze the Endeavor of the Poor for Self-Sufficiency. The founder secretary and the CEO, Mr. Ernest Paul, with close to a decade and half experience in the domain of micro finance, set out operations in the urban slums of Kurnool District, A.P. on 12th December 2001, using a fast track model drawn upon the positive features of 'Grameen' methodology. SAADHANA from its humble beginning in 2001 has now reached out to more than 20,000 poor women within a short span of four years scaling up its operations to surrounding towns with innovative partnerships. GRAM VIKAS is a rural development organization, working with poor and marginalized communities of Orissa since 1979, towards making sustainable improvements in the quality of life of the rural poor. Founded by a group of student volunteers from Chennai who came to Orissa under the umbrella of the Young Students Movement for Development (YSMD), Gram Vikas was registered as a society on January 22, 1979, under the Societies Registration Act, 1860. The organization currently serves a population of over 200,000 (~38,000 households) across 542 villages in 17 districts of Orissa. Gram Vikas mission is realized through the programme and process of MANTRA - Movement and Action Network for the Transformation of Rural Areas.

3) CONTRIBUTION OF SIDBI AND NABARD IN MICRO FINANCING:SFMC: - SIDBI FOUNDATION FOR MICRO CREDIT SIDBI Foundation for Micro Credit (SFMC) was launched by the Bank in January 1999 for channelizing funds to the poor in line with the success of pilot phase of Micro Credit

Scheme. SFMC is the apex wholesaler for micro finance in India providing a complete range of financial and non-financial services such as loan funds, grant support, equity and institution building support to the retailing Micro Finance Institutions (MFIs) so as to facilitate their development into financially sustainable entities, besides developing a network of service providers for the sector. Supports offered to MFIs are: Liquidity Management: SFMC has introduced a special short term loan scheme, Liquidity Management Support (LMS) for the long term partners. Equity Provision of equity capital to the NBFC-MFIs is perceived as an emerging requirement of the micro finance sector in India. SIDBI provides equity capital to eligible institutions not only to enable them to meet the capital adequacy requirements but also to help them leverage debt funds. Quasi equity: The Transformation Loan (TL) product is envisaged as a quasi-equity type support to partner MFIs that are in the process of transforming themselves / their existing structure into a more formal and regulated set-up for exclusively handling micro finance operations in a focused manner. Being quasi-equity in nature, TL helps the MFIs not only in enhancing their equity base but also in leveraging loan funds and expanding their micro credit operations on a sustainable basis. The product has the feature of conversion into equity after a specified period of time subject to the MFI attaining certain structural, operational and financial benchmarks. Direct Credit to clients / members of MFIs: SFMC would be providing direct credit to SHGs/ solidarity groups/ individual clients of the select MFIs. However, these borrowers would be supported/ supervised by the MFI. The scheme is targeted on larger MFIs, which have strong credit and recovery mechanism, MIS and internal control. Under the

arrangement, SFMC would assess the MFIs ability to manage the projected micro credit portfolio and extend credit to the borrowers of MFI. Micro Enterprise Loans: Institutions/ MFIs with minimum fund requirement of Rs.25 lakh p.a. and having considerable experience in financial intermediation/ facilitating or setting up of enterprises/ providing escort services to SSI/ tiny units/ networking or active interface with SSIs etc. and having professional expertise and capability to handle onlending transactions shall be eligible under the dispensation. The institutions would be selected based on their relevant experience, potential to expand, professional management, transparency in operations and well laid-out systems besides qualified / trained manpower. On lending: In keeping with its mission, SIDBI Foundation identifies, nurtures and develops select potential MFIs as long term partners and provides credit support for their micro credit initiatives. The eligible partner institutions of SIDBI Foundation, therefore, comprise large and medium scale MFIs having minimum fund requirement of Rs.10lakh per annum. In all, around 100-125 MFIs are planned to be developed as long term partners over the next 4 years. Large and medium scales MFIs having considerable experience in managing micro credit programmes, high growth potential, good track record, and professional expertise and committed to viability are provided financial assistance for on lending. Capacity Building: SFMC has decided that need-based capacity building support in the form of grant be provided to the partner MFIs, in the initial years, to enable them to expand their operations, cover their managerial, administrative and operational costs and provide technical support besides helping them achieve self-sufficiency in due course.

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The grant support is being provided both as technical assistance as well as operational support. The technical assistance component is directed at helping the MFIs to strengthen their micro finance programmes through inputs such as human resource development etc. NABARD: Strengthening of rural financial institutions, which deliver credit to the sector, has been identified by NABARD as a thrust area. In order to reinforce the credit functions and to make credit more productive, NABARD has been undertaking a number of developmental and promotional activities such as: 1) Help cooperative banks and Regional Rural Banks to prepare development actions plans for themselves 2) Enter into MOU with state governments and cooperative banks specifying their respective obligations to improve the affairs of the banks in a stipulated timeframe 3) Help Regional Rural Banks and the sponsor banks to enter into MoUs specifying their respective obligations to improve the affairs of the Regional Rural Banks in a stipulated timeframe 4) Monitor implementation of development action plans of banks and fulfillment of obligations under MOUs 5) Provide financial assistance to cooperatives and Regional Rural Banks for establishment of technical, monitoring and evaluations cells 6) Provide organisation development intervention (ODI) through reputed training institutes like Bankers Institute of Rural Development (BIRD), Lucknow www.birdindia.com, National Bank Staff College, Lucknow www.nbsc.in and College of Agriculture Banking, Pune, etc.

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7) Provide financial support for the training institutes of cooperative banks 8) Provide training for senior and middle level executives of commercial banks, Regional Rural Banks and cooperative banks 9) Create awareness among the borrowers on ethics of repayment through Vikas Volunteer Vahini and Farmers clubs 10) Provide financial assistance to cooperative banks for building improved management information system, computerization of operations and development of human resources. NABARD Micro Credit Innovations: Kisan Credit Card R & D Fund Swarojgar Credit Card Farmer's Club Programme Government Sponsored Schemes SHG -NABARD linkages programme With a total of more than 140,000 retail outlets in the commercial, cooperative and regional rural bank sectors, the rural banking network in India provides at least one outlet for every 4 villages or for about every 1000 households. The programme provides a supportive sub-system to this impressively large bank infrastructure. The very poor have felt need to save. They also develop mature credit habits through SHGs. Optimum size of 15 to 20 members provides economy of scales, to make banking with them a viable proposition. The SHG NABARD bank linkages programme is one of the largest Micro Finance initiatives in the world to day. By December 2001, it benefited 6 million plus poor households.

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4) COMMERCIAL BANKS IN MICRO-FINANCE: Role of Banks Evolving an additional delivery mechanism for providing financial services to the rural poor by combining the service ethos, grassroots link and familiarity with rural milieu possessed by micro Finance Institutes with the financial resources of the formal banking system; encouraging thrift and credit activity in a segment of the population which could not be reached by the institutional credit delivery system; creating future quality clients for the banking system; and generating healthy competition among institutions in the rural areas for promoting sustainability among them. Types of Banks in Micro-finance In general, there are four main types of intermediaries: Full-service private commercial banks: Most have a national presence and offer a host of financial products and services through an extensive branch network. State-owned banks: These large banks provide multiple services according to government priorities. They often act as a channel for government transfers, payments, or receivables and usually serve a large number of deposits. Finance companies and specialized banks: These smaller financial institutions focus on a particular sector, such as housing or consumer lending, and generally have a regional rather than a national presence. Micro-lending NGOs transformed into regulated banks or specialized financial institutions: These small institutions have limited regional presence and highly specialized programmes. Financial Products and Methodologies

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Micro lending: Over the years, NGOs in micro-finance have developed innovative lending methodologies to reach poor clients with micro-loans. Some of the principal characteristics of micro lending are: Short-term, working capital loans. Lending based on character, rather than collateral. Sequential loans, starting small and increasing in size. Group loan mechanisms as a collateral substitute. Quick cash-flow analysis of businesses and households, especially for individual loans.

Prompt loan disbursement and simple loan procedures. Frequent repayment schedules to facilitate monitoring of borrowers.

Interest rates considerably higher than those for larger bank customers to cover all costs of the micro-finance program.

Prompt loan collection procedures. Simple lending facilities, close to clients. Staff drawn from local communities, with access to information about potential clients.

Computerizing with special software to allow loan tracking for larger programs.

Micro-deposits: The new micro-finance bankers knew relatively little about deposit mobilization methodologies that reach the low income and/or micro-enterprise client. The

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benefits of micro deposits to the micro-clients are: 1) Liquid passbook savings accounts and low minimum balances. 2) Depositories conveniently located. Secure deposits: Operational features of the program: 1) Savings accounts with very low minimum balances. 2) Lower levels of interest, compared with commercial banks, because of higher administrative costs. 3) Simple, hospitable buildings and mobile units with low overhead. 4) Simple administrative forms and procedures. 5) Incentives for savings, such as lotteries Regulation and Supervision: Legal reserve requirements: In many developing countries, legal reserves on deposits are extremely high, discouraging deposit mobilization. Banks are less likely to utilize their own, scarcer funds for micro-enterprise programs in this environment. Reporting requirements: Bank regulatory and supervisory authorities generally require frequent and detailed reports from commercial banks. These reporting requirements were originally designed for institutions with fewer, larger transactions. 5) GROWTH OF MICRO FINANCE IN INDIA: - Microfinance is fast emerging as a
hot opportunity for global players with an estimated $20 billion to be invested globally and around $3 billion in India, by 2010. The volume of total microfinance loans globally rose from $4 billion in 2001 to around $25 billion in 2006, according to a research recently conducted by Deutsche Bank. About 51% of the total borrowers belong to South Asia, says Raimar Dieckmann of Deutsche Bank in the report. Meanwhile a research conducted by Hyderabadbased Intellecap, a strategic services firm in the international development sector, states that the

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growth of Micro Finance Institutions (MFIs) in India would be even faster than anywhere in the world in the years to come. The potential client base for microfinance in India is estimated at around 75 million households. The progress report submitted by Micro credit summit campaign indicates that as of Dec.31, 2004, 3,164 micro credit institutions have reached 92.27 million clients translating into micro credit. As a result, between 1961 and 2000 the average population per bank branch fell tenfold from about 140 thousand to 14000 (Burgess & Pande, 2005 ) and the share of institutional agencies in rural credit increased from 7.3% 1951 to 66% in 1991 . The programme has come a long way since 1992 passing through stages of pilot (1992-1995), mainstreaming (1995-1998) and expansion phase (1998 onwards) and emerged as the worlds biggest microfinance programme in terms of outreach, covering 1.6 million groups as on March, 2005 . It occupies a pre-eminent position in the sector accounting for nearly 80% market share in India.
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6) CHALLENGES AHEAD MICRO FINANCE ORGANIZATIONS: Efficiency refers to the ability to use scarce resources most effectively to reach thousands of customers, deliver quality services, and close the biggest gaps between the supply and demand of basic financial products for the poor. In microfinance, efficiency means using the least amount of inputs - particularly staff time and capital - to produce the greatest number of loans, reach under-banked clients, and deliver a range of valued services. But there are big challenges in front of MFIs in India, which cause inefficiency in the operations. These questions are examined in Microfinance and Public Policy, a new book published by Palgrave McMillan and the International Labour Organization (ILO) and edited by Bernd Balkenhol. The publication is based on a survey of 45 well-established microfinance institutions in 24 countries,

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carried out by the ILO, the Universities of Geneva and Cambridge and the Institute of Development Studies in Geneva. The major challenges before MFIS are:

Existing challenges Addicted from subsidies Communities not aware of rights and responsibilities Inaccessibility and corruption Inefficiencies Less productive staff

Demanding scenario De-addicted from capital&subsidies Aware of rights and responsibilities

Accessibility and fair practices Efficiencies Increased staff productivity by training & development

Grant based (Foreign/GOI) Not linked with mainstream Mainly focused for credit Dominated

Regular fund sources(Borrowings/deposits) Part of mainstream (banks/FIs) Add savings and insurance Reduce dominance of informal unregulated suppliers

Non-specialized Not oriented to financial analysis Non profit capital Focused on formal service providers (Informal not regulated)

Specialized in financial services Thorough in financial analysis for profit Include/recognize informal e.g. SHGs

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Multiple and conflicting regulations

Coherence and coordination across regulators

6) MAJOR ISSUES IN MEETING OF RBI ON MICRO FINANCE HELD ON August 6, 2003: A High-level meeting on Micro finance was held under the Chairmanship of Deputy Governor Shri Vepa Kamesam on August 6, 2003 which was attended by senior executives of select Public sector and Private sector banks, Regional Rural Banks, District Central Co-operative Banks, micro finance institutions (MFIs), SIDBI and NABARD. The meeting discussed the reports submitted by the four informal groups which were set up for identifying the policy measures relating to micro finance delivery; the groups studied issues relating to: (i) Structure &Sustainability; (ii) Funding; (iii) Regulations; and (iv) Capacity Building. Recommendations of the Group on Structure and Sustainability Issues Convener Dr. Nachiket Mor, ED, ICICI Bank Total deregulation of interest rates on small loans (< Rs. 200,000) from commercial banks directly to individuals. Emphasis on savings and remittances besides credit, variable rates on deposits Incentives like performance-linked compensation, flexible timings etc. Capacity building especially in the area of accounting and financial standards Banking and other financial services through emerging low-cost rural Networks like e-governance projects and information kiosks.

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allowing partnership of banks with other agencies to offer third party banking

Recommendations of the Group on Funding Issues Convener Shri V.K.Chopra,ED,OBC The main emphasis was on setting up a National Micro Finance Equity Fund for Weaker Section lending. Evolution of special credit rating tools for MFIs in India and building up an MFI Information Bureau for providing information was also proposed. Commercial banks/RRBs assistance in funds was demanded. Creation of a separate category of NBFCs for attending to microfinance business with entry capital requirement of Rs.25 lakhs for MFI was recommended. The amount of deposits mobilized by any such MFI should not exceed Rs.5000/- per depositor and all such deposits may be covered by the guarantee of Deposit Insurance & Credit Guarantee Corporation. Recommendations of the Group on Capacity Building Issues Convener Shri A.Vikraman, CGM, SIDBI RBI shall facilitate establishing micro finance funds for capacity building. Besides the subsidy funds of Swarnajayanti Gram Swarozgar Yojana. (SGSY), funds shall be mobilized from Rural Infrastructure Development Fund (RIDF), NABARD and also part of the profits of commercial banks. RBI should constitute a permanent working group on micro finance constituting members from formal financial institutions, Government, apex development banks, NGOs and MFIs to monitor and review the progress on allocation of resources and undertaking of capacity building initiatives. A separate national fund for Business Development Services could be thought of. MFIs/banks/Govts may share promotional costs of SHGs.

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A National-level experience-sharing forum may be set up for interaction amongst institutions like RBI, NABARD & SIDBI.

Recommendations of the Group on Regulatory Issues Convener Shri N.Kanthakumar, ED, Canara bank The regulatory issues have been classified under four tiers. A- those pertaining to SHGs B- those pertaining to NGOs C- those pertaining to Micro Credit Institutions (MCIs) D- those pertaining to Micro Finance Institutions (MFIs). Under all four categories RBI recommended to adapt more disclosure practices, granting loan to all needy persons despite of providing large amount of loan to a few persons. More tax deductions were demanded to increase profits. 7) CONCLUSION: The high interest rates and forced loan recovery practices of microfinance institutions have been held responsible for the suicide of several farmers in Andhra Pradesh. It is evident that poverty makes good business sense to MFIs, writes Sudhirendar Sharma. Data from the Micro Banking Bulletin reports that 63 of the world's top MFIs had an average rate of return, after adjusting for inflation and after taking out subsidies programs might have received, of about 2.5% of total assets. This compares favorably with returns in the commercial banking sector that microfinance can be sufficiently attractive to mainstream into the retail-banking sector. Some people also think that MFIs are exploiting the poor people. In short, we have every reason to expect that programs that reach out to the very poorest micro clients can be sustainable once they have matured, and if they commit to that path. The evidence supports this position.

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The lessons that can be drawn from the study are that: Firstly, there should be more coordination between the various organizations working in this area. Secondly, more awareness should be created among the target public. Thirdly, MFIs must increase their operational efficiency by adopting new technologies and try to become less reliable on subsidies and government funding. Some valuable lessons can be drawn from the experience of successful Microfinance operation. Fourthly, the poor save and hence microfinance should provide both savings and loan facilities. However, attaining financial viability and sustainability is the major institutional challenge. Careful research on demand for financing and savings behavior of the potential borrowers and their participation in determining the mix of multi-purpose loans are essential in making the concept work (tall 1996). REFERENCES:

From Wikipedia, the free encyclopedia, http://en.wikipedia.org/wiki/Microfinance Institute for financial management and research, CFM, http://ifmr.ac.in/cmf/ Micro finance interventions, www.un.org.in/iawg/icecd/section1.htm Micro finance gateway, www.microfinancegateway.org/ www.sidbi.in/Micro/index.htm www.nabard.org/development&promotional/developmentalinitiatives.asp www.rbi.org.in/scripts/PublicationReportDetails.aspx?FromDate=11/06/03&SEC ID=21&SUBSECID=0

ECONOMIC TIMES, 26 DEC.2007, economictimes.indiatimes.com/articleshow/1648287.cms

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Micro finance: a tool to socio-economic development; Prof. V. K. Sapovadia (Core faculty, NICM, India)

Par Mayada M. Baydas; Douglas H. Graham; Liza Valenzuela, adapted by Karen King (ADA)

www.analysis136.jsp.htm Krishna Kumar Agrawal, Aman Gupta, glimpses of microfinance, the journal of accounting and finance, vol.21, April September 2007, pp.(31 to 39)

www.gdrc.org/icm/conceptpaper-india.html www.gramvikas.org

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