A microfinance institution with a difference
Fernandez, A.P.
Economic and Political Weekly 42(13): 1185-1189
2007
ISSN/ISBN: 0012-9976 Document Number: 233582
The Mysore Resettlement and Development Agency (MYRADA) has tried to work towards developing a different kind of microfinance institution (Sanghamithra Financial Services) that is committed to strengthening self-help groups. MYRADA believes that while provisioning of credit through the microfinance institution is important, credit can be productively absorbed only when it is enmeshed with other development interventions. This paper shows that the absorption and use of credit can be made more effective if the microfinance institutions are linked with self-help groups. Emphasizing partnerships, the paper shows how multiple agencies could work together, each playing a unique role in poverty alleviation. Hence, it is argued that Sanghamithra need not become a single window for all financial services to the poor.