MICROFINANCE

Paper Code: 
CBFS 502
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

The course will enable the students to acquaint themselves with the concept of microfinance, its role in the economic development of rural and semi-urban populations, and the importance of financial inclusion

Course Outcomes: 

 

 

Course

 

 

Learning outcome (at course level)

Learning  and Teaching Strategies

Assessment Strategies

Course Code

 

 

Course Title

CBFS502

 

Microfinance

(Theory)

 
  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 the government’s initiatives for the development of SHGs for sustainable development of the rural economy.
  4.  Acquire knowledge about the products offered by MFIs and the procedure to avail them.
  5.  Develop an insight into loan documentation and the procedure of disbursement of microfinance.
  6. Contribute effectively in course-specific interaction.

 

Approach in teaching: Blended Learning, Collaborative approach, Interactive Lectures, Discussion, Group Projects, PowerPoint presentation.

   

Learning activities for the students:

Self-learning assignments, Seminar presentations, Case Study Analysis, Brainstorming activities

 

Class tests, CA Test,

Semester end examinations, Quiz,

Evaluation of student Presentations,

 

Evaluation of Individual projects,

 

Assessment of Project Reports and viva voce.

 

12.00
Unit I: 
Financial Inclusion/ Exclusion

Financial Inclusion/ Exclusion (12 Hours)
 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

Principles of Microfinance (12 Hours)
 Introduction, history of Microfinance, Worldwide developments,
 Microfinance in Asia and the 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,SHGs

Government and Microfinance,SHGs (12 Hours)
 Introduction, SHGs, and different schemes,
 SHG and Poverty Alleviation Programs, SHG and Special Programs/ Schemes.
• Importance of SHGs: Introduction, Benefits 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, KYC

Deposit and Credit Products, KYC (12 Hours)
 Deposit products offered by MFIs, types of customers who can avail of these products, features, and application processes.
 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

Unit V: 
Loan Documentation and Disbursement:

Loan Documentation and Disbursement: (12 Hours)
 Required Documents for loan sanction, terms and conditions.
 Disbursement of loan – process.

Essential Readings: 

Essential Readings:
1. O.C. Rana ans Hem Raj, Microfinance , Himalayan Publication.
2. K.C.. Shekhar, Banking Theory and Practice, Indian Institute of Banking and Finance.
3. Moorad Choudhary, The Principles of Banking,Wily Finance.
4. Karmakar K G, Microfinance In India, Sage Publication India.
5. Puhazhendhi Venugopalan,Microfinance India, Sage Publication India.

References: 

1. Teki S., Mishra R.K. , Microfinance and Financial Inclusion,Academic Foundation.
2. Status of microfinance in India, NABARD-Report
3. H.M.W.A. Herath, MICROFINANCE Theory and Practice.
4. Handbook on Microfinance Institutions,ICAI
e- Resources
1. https://birdlucknow.nabard.org/center-of-excellence/cmr/microfinance-rev...
2. https://www.nabard.org/about-departments.aspx?id=5&cid=477
3. https://www.nabard.org/content.aspx?id=651
4. The Microfinance Review (Mfr) Journal
5. Journal of Microfinance / ESR Review
6. Enterprise Development & Microfinance
7. International Finance
8. SKS Microfinance Limited MarketLine Company Profile

Academic Year: 
2023-2024
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