Self Reliant, Self Respect, Prosperity through SIDBI's Microfinance

Is the "Business Correspondent Model" effective in bringing microfinance into the mainstream?

This presentation discusses the implications and challenges of adopting the Small Industries Development Bank of India (SIDBI's) models of microfinance. The presentation:

Outlines the role played by microfinance so far;
Details the two new models - the Business Facilitator Model (BFM) and the Business Correspondent Model (BCM);
Lists their eligibility criteria.

The presentation describes:

Methods of developing a BCM;
Role of MFIs;
Challenges;
Risk factors.

The presentation concludes by listing the following measures for risk mitigation:

Lenders forums;
System improvement;
Corporate guarantee;
Creation of a separate fund by MFI;
Effective capacity building.

About this Publication

By Vikraman, A.

Published

January 2005

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