Rajasthan Microfinance Report 2010

This report describes the state of the microfinance sector in Rajasthan, India in 2010.

Studies reveal the vast potential for microfinance in Rajasthan. This potential can only be realized through concerted and sustained efforts. The report states that:

• Self-help groups (SHGs) have dominated the microfinance sector in Rajasthan, but MFIs have started operations in the last three years;
• MFIs initially concentrated on towns and cities, but have now begun to expand operations into rural areas;
• MFI credit outstanding to people has surpassed bank credit outstanding to SHGs;
• Number of SHGs has been increasing at 22% annually;
• SHGs have shown impressive growth in savings;
• SHG approach has become the key strategy for social mobilization, increasing financial access to the poor and livelihood generation under the state governments poverty alleviation programs.

Microfinance sector growth in Rajasthan will primarily depend on the smooth flow of credit from banks to SHGs and on the quality of SHGs. The report details action points for all stakeholders to make the SHG movement in Rajasthan vibrant and effective, and achieve financial inclusion, women empowerment and poverty alleviation.