Microfinance : The Sour Grape

Microfinance, today, has become a powerful instrument for poverty alleviation, and enables the poor to accumulate assets, boosts their incomes, and reduces their economic vulnerability, but still, it is a much confused buzzword in the banking sector. Microfinance is still an evolving sector in countries like India as compared to many developed countries, where it is highly commercialized through created partnerships, leveraged public and private sector assets and shared know-how mechanisms. There are various opinions about the micro credit demand and supply in India. In the growing market, to meet the huge demand, comprehensive financial inclusive systems and approaches are required. The present paper examines the dominant delivery models of Microfinance - such as SHG Bank Linkage Model and Microfinance Institution Model in India.