Year: 2017 | Month: December | Volume 4 | Issue 2
Economic Performance of Micro Financing Institutions
R.P. Singh* and Jai Prakash
DOI:10.5958/2394-8159.2017.00013.5
Abstract:
An attempt has been made to examine economic performance of micro financing institutions in the country over period. The analysis revealed that there is increasing change in opening of branches of micro-financing institution in which the rate of change was nearly 8 percent per annum. In respect to clients the rate of growth per year was observed to be 23% which was pronounced more in clients of small micro-financing group. The employment in micro-financing organization showed positive changes and increased at the rate 17% per annum. The gross loan portfolio of micro financing institution grew at annual rate of 75% in which rate of growth of GLP of small micro financing was higher in comparison of medium and large groups of MFIs. The loan disbursement amount further increased at a rate of 73% in which it was found higher rate in small size group of MFIs. The outstanding loan per client grew at 24% per annum which was less than rate of growth of disbursement. It was also observed that southern region of the country was a head in operating of micro-finance institutions. However, eastern region, western region and central region of the country have also made good progress in establishment of micro-financing institution. The north region and North-east are lagging behind that require special attention for development of micro-financing institution. On the whole there have been significant changes in economic performance of micro-financing institutions of the country.
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