Contents Foreword by Prof. Mridul Eapen 5 Preface 11 List of Tables 16 List of Figures 18 Abbreviations 19 1. Introduction 23 Context of the Study 28 Microfinance: An Inovative Financial Arrangement for the Poor 32 Statement of the Problem 34 Objectives 35 Hypotheses 36 Design of the Study 36 Sources of Data 38 Methodology 38 Method of Sampling 38 Data Collection Instruments 39 Fieldwork 40 Data Processing and Analysis Plan 40 Limitations of the Study 40 Chapter Scheme 40 Notes 41 2. Theoretical and Empirical Issues of Microfinance 42 Sustainability 42 Outreach or Targeting 46 Impact 53 Complexity of Sustainability, Outreach and Impact 58 Transaction Cost in Microfinance System 59 Efficacy of Microfinance and Self-Employment 60 Inadequate Demand or Low Credit Absorption of Poor Clients 62 Problems in Replication and Competition 63 3. Microfinance: A Historical Overview 65 Traditional Models of Microlending 66 Emergence of Microfinance 72 Grameen Bank-The Pioneer 73 BRI-The Agricultural Credit Institution Turned into Village Banks 75 BancoSol-An NGO Turned Bank 77 TRDEP-The Rolling Programme 78 SEWA -An Indian Experience 80 SACA-The Farmers' Club 82 An Appraisal of Microfinance Institutions and Programmes 84 4. Emergence and Growth of Microfinance in India 91 Institutional Arrangements 92 Nationalisation of Banks 95 Development Programmes of Government of India 99 Microfinance in India: An Overview 103 Microfinance and NGOs 103 NABARD and Microfinance 107 Government Programmes and Microfinance 110 5. The Kerala Model and Relevance of Microfinance 117 Women and Kerala Model of Development 118 Credit Institutions in Kerala 131 Emergence of Microfinance in Kerala 134 Local Governments and Microfinance 138 NGOs in the Field of Microfinance 139 NABARD in Kerala 140 6. Study Area and Microfinance Organisation 142 Study Area: Ulloor Panchayat 142 Demographic Characteristics of Members 144 Income and Assets 147 Financial Position of the Members 150 Samatha Vanitha Swayam Sahaya Sangham (SVSSS) 151 Functions of Self Help Groups 153 Appendix 158 7. Microfinance, Capacity Building and Empowerment 162 PARTI Capacity Building at the Institutional Level: People's Plan Campaign 163 Democratic Capacity Building through Self Help Groups 164 Enhancement of Economic Capacity through Microfinance Organisation 166 Position of Microenterprise in the MFO 167 Control over Productive Assets 171 Access to Income 173 Work Burden 175 Shortcomings 176 PART II SVSSS Federation: Network of SHGs 177 Linkages with Other Institutions 179 Appendix 183 8. Performance of Self Help Groups and Emerging Issues in Microfinance 189 Performance of Self Help Groups 189 Organisational Functions of SHGs 190 Participation in Activities of SHGs 195 Emerging Issues in Microfinance 199 Appendix 206 9. Summary, Conclusion and Suggestions 212 Appendices Appendix I : Sampling Design 225 Appendix II : Interview Schedule for the Self Help Groups 226 Appendix III Interview Schedule for the Beneficiaries 229 Appendix IV Performance Rating 234 Appendix V Poverty Index 236 Appendix VI Economics of Self Help Groups and Microfinance 237 Appendix VII Some Basic Features of SHGs Promoted by NGOs/Banks in India 238 Appendix VIII Population in the Wards of Ulloor Panchayat 239 Appendix IX A Framework for Analysing Women's Empowerment 240 Bibliography 242 Index 256