Recommended Microfinance Institutions-Crisil Report

One of the greatest challenges before the Indian sub-continent which accommodates more than one-third of the population is poverty. India, one of the BRIC nations with more than 1.2 billion population is seen by many developed countries as an emerging economy. India’s economic growth has failed to make a significant improvement in its poverty figures with 400 million and more than the total in the poorest African Nations- still stuck in poverty. Government of India with its concern started various poverty alleviation programs but they have failed to deliver the objectives to the level which is desired. The reasons may be many such as failure to reach the target group, loopholes in the system, developing a robust mechanism to name a few. Many countries including India experimented with subsidized credit which only led to increase in the NPAs. But certain development in recent years has brought a fresh focus on the problem of regulation in field of microfinance. This paper highlights the 25 leading MFI’s currently working in India. The paper also deals with the need for a regulatory body to regulate, develop and guide the numerous MFIs and NGOs who work in the field of microcredit.