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IJSTR >> Volume 9 - Issue 4, April 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Need Of Strong Governance Architecture & Structural Interest Rate In Indian Microfinance Industry

[Full Text]



Chandan Mohanty, Dr.Suresh Kumar Sahoo , Srinivas Subbarao Pasumarti,



Microfinance, Interest rates, Governance and Architecture, Recovery



Microfinance plays an important role in poverty eradication and now it has become financial inclusion growth Engine. Initial days of microfinance development were aiming towards service to the rural poor people. In the timeframe microfinance became business oriented and focus shifted from service mentality to profit earning mentality. Hence once upon a time this industry was called a tool for sustainable development is now a day’s running with many issues for their own stability. Out of many issues two measure issues are still now seeking new path for solution.ie need of strong governance architecture to regulate the microfinance industry and introduction of affordable Structural Interest Rates. Weak governance architecture is fuelling scope for exploitation of Interest rates by microfinance institutions. Eruption of Andhra Pradesh Microfinance Crisis 2010 is a clear example of weak regulatory framework and lack of affordable Structural Interest Rates.



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