MICROFINANCE

Paper Code: 
CBFS 601
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

 
 

On completion of this course, the students will be able to

  1. Critically evaluate the progress of financial inclusion schemes working in India.
  2. Examine and evaluate the role of Banks in accelerating the growth of microfinance in India.
  3.  Evaluate government’s initiatives for the development of SHGs for sustainable development of rural economy.
  4.  Acquire knowledge about the  products offered by MFIs and procedure to avail them.
  5.  Develop an insight about loan documentation and procedure of  disbursement of microfinance.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

  

 

12.00
Unit I: 
Financial Inclusion/ Exclusion

 Meaning and Concept ,
• Reasons for FI, Role of Banks in Financial Inclusion, Financial literacy,
• Latest Schemes of Government - PMJDY- Objectives Features, Progress , Atal Pension Yojana- Objectives Features, Progress

12.00
Unit II: 
Principles of microfinance

 Introduction, history of Microfinance, Worldwide developments,
 Microfinance in Asia and Pacific.
 Status of Microfinance in India: Introduction, History of Microfinance in India, Recommendations of various committees,Outreach of Microfinance,
 Potential of Microfinance in India, Banking potential for Microfinance in India.

12.00
Unit III: 
Government and Microfinance

 Introduction, SHGs and different schemes,
 SHG and Poverty Alleviation Programs, SHG and Special Programs/ Schemes.
• Importance of SHGs: Introduction, Benefit of SHGs to members, Benefits to women, Benefits to Banks, Benefits to Government, Benefits to Voluntary Agencies and Benefits to Society; Joint liability Group, their composition and mission.

12.00
Unit IV: 
Deposit and Credit Products

Deposit products offered by MFIs, types of customers who can avail of these products, features, application process.
 Retail loans, MSME loans, Agri Loans, micro loans, features of each type of loan.
 Types of liens, Kisan Credit card, its features and benefits.
 Role of NABARD and RBI in microfinance.
• KYC Norms - KYC process and verify requirements,

12.00
Unit V: 
Loan Documentation and Disbursement

 Required Documents for loan sanction, terms and conditions.
 Disbursement of loan – process.

Essential Readings: 

• O.C. Rana ans Hem Raj, Microfinance , Himalayan Publication.
• K.C.. Shekhar, Banking Theory and Practice, Indian Institute of Banking and Finance.
• Moorad Choudhary, The Principles of Banking,Wily Finance.
• Karmakar K G, Microfinance In India, Sage Publication India.
• Puhazhendhi Venugopalan,Microfinance India, Sage Publication India.

References: 

SUGGESTED READINGS
 Teki S.,Mishra R.K. , Microfinance and Financial Inclusion,Academic Foundation.
 Status of microfinance in India, NABARD-Report
 H.M.W.A. Herath ,MICROFINANCE Theory and Practice.
 Handbook on Microfinance Institutions,ICAI

E RESOURCES
https://birdlucknow.nabard.org/center-of-excellence/cmr/microfinance-rev...
https://www.nabard.org/about-departments.aspx?id=5&cid=477
https://www.nabard.org/content.aspx?id=651

JOURNALS
 The Microfinance Review (Mfr) Journal
 Journal of Microfinance / ESR Review
 Enterprise Development & Microfinance
 International Finance
 SKS Microfinance Limited MarketLine Company Profile

Academic Year: 
2023-2024
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