2025, Vol. 6, Issue 1, Part D
Microfinance credit lending models: A comparative study Mysore and Chamarajanagar district
Author(s): Anand K
Abstract: In Indian microfinance, ideological differences have frequently been viewed at the level of practice by implementing several delivery modes, such as the financially effective Self-Help Group (SHG) model, Grameen model, and Cooperative Bank model. Grameen converts deposits made in villages into loans for the more needy in the villages, whereas the SHG is a saving-led slow growth model that is exclusive to India and cooperatives and Credit Unions have been around for many decades catering to the financial needs of the lower income brackets. The three models are described in the article along with an attempt to compare them along a number of parameters. The study makes the case that each model has benefits that rely on a variety of outside variables, including competition and demographic homogeneity. The models live up to their optimum potential when in alignment with organizational qualities like culture and its strength, leadership etc. Microfinance Credit Lending Models: A comparative study India is a country that frequently suffers from a dual set of outside influences, from the economically motivated urban poor population to the socially motivated and stratified societal structures in rural areas. It is this duality that needs the existence of both the models, matching to the diversity of target population and characteristics of the implementing microfinance company.
DOI: 10.22271/27084515.2025.v6.i1d.474
Pages: 312-316 | Views: 66 | Downloads: 25
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How to cite this article:
Anand K. Microfinance credit lending models: A comparative study Mysore and Chamarajanagar district. Asian J Manage Commerce 2025;6(1):312-316. DOI: 10.22271/27084515.2025.v6.i1d.474
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