Innovative strategies devised by Indian microfinance institutions to achieve cost efficiency
Open Access
- 21 January 2012
- journal article
- Published by Center for Strategic Studies in Business and Finance SSBFNET in International Journal of Finance & Banking Studies (2147-4486)
- Vol. 1 (1), 15-20
- https://doi.org/10.20525/ijfbs.v1i1.132
Abstract
This study is a discussion on the ‘Non-Governmental Organization-Microfinance Institution Partnership Model’ and ‘Securitization Model’ used by Indian microfinance institutions to achieve cost efficiency. These two models are effective strategies devised and used by efficient and sustainable Indian MFIs to reduce their operating cost and financing cost. Achieving such cost efficiency is crucial for microfinance institutions to attain operational self-sustainability without levying high interest rates. Using interview method the study elicits information on these innovative strategies and recommends them to be worthy of emulation for other microfinance institutions operating in the Indian microfinance industry.Keywords
This publication has 3 references indexed in Scilit:
- Screening by the Company You Keep: Joint Liability Lending and the Peer Selection EffectThe Economic Journal, 2000
- The economics of lending with joint liability: theory and practiceJournal of Development Economics, 1999
- The Market for "Lemons": Quality Uncertainty and the Market MechanismThe Quarterly Journal of Economics, 1970