- 31 Jan
- Nitin Chaudhary, Suyash Rai
Provision of financial services to rural areas of India has expanded rapidly in the last decade or so. This has been led by expansion of micro finance with distinct models dominating the sphere of service delivery. The on-lending model where Micro Finance Institutions (MFIs) lend five member Grameen Style Joint Liability Groups (JLGs) seems to be emerging as the prominent model. Given the magnitude of the financial inclusion challenge, and taking into account the recent expansion of the sector, there is a need to analyse the models of micro finance services delivery from different perspectives, with a view to inform policy and practice choices. This note talks about the factors that drive the pricing and valuation of MFIs.
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