A Talk on Microfinance
Some time back I attended a talk on Microfinance by Kalpana Karunakaran*. There were around 20 other fellow classmates, all post-graduate students, gathered in the little classroom at six in the evening. Curiosity about Micro finance brought most of us there, after a long day of difficult sessions. Kalpana, an excellent facilitator – we were soon to discover, started the discussion by throwing an open question: What do we mean by Micro finance? The answers that came up included almost all aspects of micro credit –people in villages belonging to the low income group have no access to any form of credit, so they form small groups and borrow small amounts of money. But what did the poor need the money for and why banks wouldn’t help them, how SHGs came to their rescue, how SHGs are different from MFIs - were questions which set our grey cells in Brownian motion. What resulted from the interesting discussion were simple answers to the above questions. The following points summarize my lea...