Indian Microfinance Sector:Innovation, Discipline or Death?A Case Analysis

Abstract

This paper discusses the issue of social responsibility of Indian microfinance institutions. The elementary principle of microfinance is that it encourages the desire to become successful entrepreneurs in most of the people, including destitute also. Microfinance as a tool of corporate social responsibility proposes several avenue for success. Most of the poor potential entrepreneurs can achieve successful micro credit business by partnering with giant financial groups. Taking the arguments of poverty alleviation into consideration, social responsibility and financial sustainability of microfinance institutions can go hand in hand together and even create win-win situation for both the poor and the institutions.