What's Wrong and Right with Microfinance – Missing an Angle on Responsible Finance?

11 Pages Posted: 26 Jul 2011

See all articles by David Hulme

David Hulme

University of Manchester - Institute for Development Policy and Management (IDPM)

Thankom Gopinath Arun

University of Central Lancashire

Date Written: July 26, 2011

Abstract

Microfinance as the best way of tackling poverty is under attack. It has been accused of failing to help the poor, of treating its clients badly, of charging high interest rates and of encouraging poor people to take on excessive debt burdens. The authors examine these issues, and find that microfinance institutions (MFIs) can have significant positive impacts, including democratization of banking services, provision of secure savings facilities for poor people, and social benefits, particularly for women. The paper looks at the way forward for microfinance, suggesting some changes that need to be implemented by MFIs, banking authorities and governments.

Keywords: microfinance, microfinance institutions, low-income households, poverty reduction, Grameen Bank, India, Bangladesh

Suggested Citation

Hulme, David and Arun, Thankom Gopinath, What's Wrong and Right with Microfinance – Missing an Angle on Responsible Finance? (July 26, 2011). Available at SSRN: https://ssrn.com/abstract=1895297 or http://dx.doi.org/10.2139/ssrn.1895297

David Hulme (Contact Author)

University of Manchester - Institute for Development Policy and Management (IDPM) ( email )

Manchester M13 9GH
United Kingdom

Thankom Gopinath Arun

University of Central Lancashire ( email )

United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
453
Abstract Views
1,393
rank
65,367
PlumX Metrics