ISSUES AND CHALLENGES OF SELECT MICRO FINANCE INSTITUTIONS IN DELHI

Abstract

This project helped me to gain knowledge about various aspects of Micro credit system. There is an urgent need for micro credit providers to shift from a minimalist approach – that is offering only financial intermediation – to an integrated approach to poverty alleviation taking a more holistic view of the client including provision of enterprise development services like marketing infrastructure, introduction of technology and design development. A combination of primary and secondary research techniques was used to meet the objectives. The primary research was made through survey among the officials of Select Micro-Credit institutions in Delhi. More emphasis was laid on to know as to how they are implementing this micro-credit system and what are the developments that are expected in the near future. As a research outcome of this exhaustive thesis, I can undoubtedly support that, Microfinance helps people to escape poverty by giving them collateral-free loans and other financial services to support income-generating businesses. As each loan is repaid, the money is redistributed as loans to others, thereby multiplying its impact.