Microfinance

Semester and Year Offered: Winter Semester

Course Coordinator and Team: Dr. Kanwal Anil.

Email of course coordinator: kanwal@aud.ac.in

Pre-requisites for the course:

The participant should have the willingness and inclination to work on basic financial statements. They should also be comfortable with basic mathematical calculations/numbers and analysis. The paper would be project based where participants would have to work independently on any one Micro Finance organisation or micro business of their choice and a continuous evaluation would be done on it throughout the length and breadth of the course.

Aim: The course aims at giving the participants a basic understanding of the microfinance sector.

Course Outcomes:

1. The participants would get a good understanding on the functioning of the various Micro finance models which are existing in India as well as abroad.
2. It seeks to develop an understanding about the MFIs and their changing role in developing the sector and how Micro Finance is being marketed in the economy.
3. The participants will be able understand the genesis, evolution and present status of the sector in order to work in it.
4. The participants should be able to gain an understanding of the broader contexts that explain and fortify the field of microfinance.
5. Be knowledgeable about the benefits and controversies of microfinance in modern economies.

Brief description of modules/ Main modules:

1. Nature of microfinance: SHG, Grameen Model etc.
2. Growth of microfinance in recent times
3. Features of microcredit – beneficiary screening, interest rates, risk management
4. Sustainability and outreach of microfinance projects
5. Monitoring and performance appraisal of microfinance projects
6. Microfinance Credit Lending Models, Bank Linkage Programme, Co-operative Model,NGO-MFI Model, Differences Between SHG and JLG Model Indian SHG: Problems and Issues, SHG-Bank Linkages Programmes in India.
7. Risks in Microfinance Institutions
8. Ratings and Impact Assessment in Microfinance
9. Marketing in Microfinance Institutions
10. Micro Finance and Micro Insurance, Micro Finance and Islamic Banking.

Assessment Details with weights:

• 1. Class participation in Cases & Individual presentations 10 marks
• (5+5+10) 20 marks
• 3.Mid term Assessment 30 marks
• 4.End term Examination 30 marks
• 5.Group Activity (Role plays etc) and Activity plans in form of visit to NGO or Micro Business or organizing a guest session of an MFI on which the student is working)

Reading List:

1. Bisoyi, T. (2010). Rural Credit, Regional Rural Banks and Micro-Finance, Abhijeet Publications
2. Brakema, L. (2011). Microfinance: Profit or Poverty Reduction?, Lap Lambert Academic Publishing
3. Mohanty, C. (2011). Public Economics And Welfare State: Indian Microfinance Sector, Surendra Publications.
4. Panda, D. (2009). Understanding Microfinance, Wiley India Pvt Ltd
5. Sarkar, S. (2011). Microfinance: Concepts, Systems, Perceptions and Impact, Readworthy Publications

ADDITIONAL REFERENCE:

1. Banker to the poor: Micro lending and the battle against World poverty, Muhammed Yunus, Alan Jolis,Public Affairs,2003.
2. Finance at the frontiers, Debt capacity and the role of credit in the Private Economy,JD Von Pischke,The World Bank Washington D.C.
3. Micro Finance India –State of the sector Report2012,Access Publications,Sage,2012.
4. Transforming Micro Finance Institutions, Joanna Ledgerwood and Victoria White, World Bank Publication.2006.
5. Creating a world without Poverty: Social Business and The Future of Capitalism, Muhammed Yunus, Public Affairs,2008.
6. Beyond MicroCredit, Putting Development Back into MicroFinance,Thomas Fisher,MS Sriram,Sage,2002.
7. Indian Micro Finance, The Challenges of Rapid Growth, Prabhu Ghate,Sage,2008
8. Fortune at the bottom of the Pyramid:Eradicating Poverty Through profits, C K Prahalad,Harvey C FrueHauf, by Wharton School Publishing,2006.
9. The Economics of Micro finance , Jonathan Morduch, Beatriz Armendariz, MIT Press,2005.
10. Micro Finance, Evolution Achievements and Challenges, Malcolm Harper, ITDG Publishing,2003.
11. Micro Finance Handbook, An Institutional and Financial Perspective, Sustainable banking with the Poor, Joanna Ledgerwood, World Bank Publication.2000.