Scribd
Upload
90 views5 pages

"Micro Finance An Initiative To Promote Social Welfare": "Master of Business Administration"

This document is a synopsis submitted by Rakesha V.K for the degree of Master of Business Administration at Bangalore Central University under the guidance of Dr. Suman P.M. The synopsis examines the role of microfinance in promoting social welfare in India. It provides background on microfinance and its objectives to provide financial services to the poor. The synopsis outlines the need for the study, reviews relevant literature, and discusses the sources of data and plan for analysis. The overall aim is to analyze the socio-economic impact of microfinance and identify potential hurdles in developing social wellbeing.

Uploaded by

UDay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
90 views5 pages

"Micro Finance An Initiative To Promote Social Welfare": "Master of Business Administration"

This document is a synopsis submitted by Rakesha V.K for the degree of Master of Business Administration at Bangalore Central University under the guidance of Dr. Suman P.M. The synopsis examines the role of microfinance in promoting social welfare in India. It provides background on microfinance and its objectives to provide financial services to the poor. The synopsis outlines the need for the study, reviews relevant literature, and discusses the sources of data and plan for analysis. The overall aim is to analyze the socio-economic impact of microfinance and identify potential hurdles in developing social wellbeing.

Uploaded by

UDay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

SYNOPSIS on

“MICRO FINANCE AN INITIATIVE TO PROMOTE


SOCIAL WELFARE”
Submitted in partial fulfillment of the requirement for the
award of the Degree of
“MASTER OF BUSINESS ADMINISTRATION”

BANGALORE CENTRAL UNIVERSITY

Submitted by:

RAKESHA V.K

Reg. No: MB182865

Under The Guidance Of

Dr. SUMAN P.M

VIVEKANANDA INSTITUTE OF MANAGEMENT


Dr. Rajkumar road Rajajinagar Bangalore- 560055
2019-2020
“MICRO FINANCE AN INITATIVE TO PROMOTE
SOCIAL WELFARE”

INTRODUCTION
Microfinance is a category of financial services targeted at individuals and small businesses who
lack access to conventional banking and related services. Microfinance includes microcredit, the
provision of small loans to poor clients; savings and checking accounts; micro insurance
and payment systems. Microfinance services are designed to be more affordable to poor and
socially marginalized customers and to help them become self-sufficient.

Microfinance initially had a limited definition - the provision of microloans to poor entrepreneurs
and small businesses lacking access to credit. The two main mechanisms for the delivery of
financial services to such clients were:
(1) relationship-based banking for individual entrepreneurs and small businesses.
(2) group-based models, where several entrepreneurs come together to apply for loans and other
services as a group. Over time, microfinance has emerged as a larger movement whose object is "a
world in which as everyone, especially the poor and socially marginalized people and households
have access to a wide range of affordable, high quality financial products and services, including
not just credit but also savings, insurance, payment services, and fund transfers.

Microfinance, also called microcredit, is a type of banking service provided to unemployed or


low-income individuals or groups who otherwise would have no other access to financial services.

NEED FOR THE STUDY


1. Microfinance is a proven part of the formula for beating extreme poverty
2. Microfinance can boost agriculture and promote food security
3. Microfinance offers access to healthcare where other options are simply not
available
4. Microfinance promotes gender equality and empowers women and girls
5. promotes inclusive economic growth and stimulates productive Microfinance
employment for the poor.
REVIEW OF LITERATURE

Malcolm Harper (2002)1 in his paper titled ‘Grameen bank groups and self help groups;
what are the differences?’ showed the advantages and disadvantages of both the system. The
paper described and explained each system and compared their sustainability, their outreach
and impact on the poor and their institutional feasibility. The paper concluded by
summarizing the pros and cons of both the system in a table. The summary table includes the
pluses and minuses for both clients and banks and also the suitable conditions for both the
system to operate smoothly.

Bindu Ananth (2005)2 in her paper titled ‘Financing microfinance – ICICI Bank
partnership model’ analyzed the partnership model of financing microfinance institutions.
The paper compared three financing models for microfinance. The three models were Self
help group bank linkage model, financial intermediation by microfinance institutions and the
partnership model – MFI as a servicer. The paper described in detail the need for partnership
model and the description of how the model worked. The researcher said that the model was
unique in that it combines both debt as well as mezzanine finance to the MFI in a manner that
rapidly lead to the increase in outreach, while it unlocked large amounts of wholesale funds
available in the commercial banking sector in India. The paper also discussed how to build
links to capital markets for financing microfinance through securitization. It concluded by
highlighting key enablers for an environment of rapid microfinance growth including
regulator support for hybrid models of outreach and investments in training and funding of
initial expenses of new or emerging MFIs.

Jamie Bedson (2009)3 edited the report titled ‘Microfinance in Asia: trends, challenges
and opportunities’. The report compiled the wide ranging and voluminous Literature Review
A study on Non-Performing Assets of Microfinance Institutions in Gujarat Page 29 content
presented at the Asia Microfinance Forum 2008 convened in Hanoi, Vietnam in 2008. The
main purpose to publish the report was to equip microfinance practitioners with ideas on how
to successfully grow and strengthen their businesses and better serve the unbanked and the
poor. The report was mainly divided into various sections namely introduction to
microfinance in Asia, executive summary, Asia microfinance industry assessment summary,
financing and investment, savings and asset building, microfinance networks, microfinance
and technology and lastly microfinance and sustainable development.

Bhole B. and Ogden S (2010)4 in their paper titled ‘Group lending and individual lending
with strategic default’ had compared the presence of strategic default between group lending
and individual lending. Secondary data was considered for the purpose of the study. The
study found out results by developing its own strategic model. The paper concluded that
unless group members could impose sufficiently strong social sanctions on their strategically
default partners, or unless the bank used cross reporting mechanism, group lending can
perform worse than individual lending. It was showed that when certain restrictions on group
lending contract were relaxed then group lending yielded higher welfare than individual
lending even in the absence of any social sanctions or cross reporting.

STATEMENT OF THE PROBLEM


The bankers are ready to lend to these poor women groups as they exhibit a high repayment
rate of more than 95 per cent (NABARD 2004) and also they are instructed from the central
bank to earmark a certain proportion of their lending to SHGs. Thus, the major bottleneck
faced by the poorest, i.e., lack of access to credit to make investment, is sought to be resolved
through the establishment of micro-finance groups. In recent years, development programs of
the government have also sought to target the poor through the SHGs.

OBJECTIVE OF THE STUDY

• To study the role of micro finance in promoting social welfare.


• To analyse the socio-economic impact of micro finance.
• To study potential hurdles in the development of social wellbeing.
• To summarise the findings, conclude and offer suggestions.

SOURCES OF DATA

Data collection is the method used in collecting data for a particular use or study-The
collected data gives the researcher a clear picture about the research problem chosen
by them and to analyze it.

SECONDARY DATA
Secondary Data is the data which has been already collected or prepared by another
person which will be used by a second person in order to meet the project
requirement. The secondary data will be extracted from articles, journals, magazines.
PLAN OF ANALYSIS
The data collected for the research is mainly on the basis of secondary data. The study
is conducted by observations and will be analyzed and interpreted through simple
analysis technique. By studying write ups, journals the detailed information will be
collected.

(STUDENT'S SIGNATURE): (GUIDE’S SIGNATURE):

RAKESHA V.K Dr. SUMAN P.M

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy