What does it mean for microfinance institutions to be financially sustainable?

An operationally and therefore financially sustainable microfinance organization should ideally be able to maintain self-sufficiency while keeping interest rates and operating costs low to successfully cater to the poor, especially in SSA.

Does microfinance play any role in fostering financial inclusion in India?

Over these years, no other form of financial services has had the kind of far-reaching impact, in terms of fostering financial inclusion, as microcredit has. It has helped 50 million economically vulnerable Indians, 99\% of them women, live a life of dignity and financial independence.

What drives microfinance institution’s financial sustainability?

First, we show that a high quality credit portfolio, coupled with the application of sufficiently high interest rates that allow a reasonable profit and sound management are instrumental to the financial sustainability of MFIs.

What is financial sustainability?

1. The assessment that a project will have sufficient funds to meet all its resource and financial obligations, whether the fund continues or not.

What are the role of microfinance in India?

Microfinance in India plays a major role in the development of India. It act as an anti-poverty vaccine for the people living in rural areas. It aims at assisting communities of the economically excluded to achieve greater level of asset creation and income security at the household and community level.

Why is sustainability important in financial services?

It supports economic well-being, which then increases the ability of families and Governments to improve social outcomes. The financial industry is playing an increasingly relevant role in the deployment of sustainability. There are mainly three ways through which financial institutions can tackle sustainability.