For non-quantifiable work, performance must be judged subjectively. It is said that the methodology of technical analysis rests upon the assumption of the tendency of the historical repetition of its certain activities. Offer incentives to organized credit delivery systems that work with poor clients, and 4.
Calculation of performance indicators in the form of ratios, manifest the actual situation of efficiency, viability, and outreach of microfinance operations. Although many NGOs were found working sincerely, but the weaknesses like lack of business acumen overly ambitious aspirations, limited scale of operation, frequent use of donated fund or soft loans from foreign development organizations, and the flow of loan to non-targeted groups were found common.
Ledgerwood presented the performance indicators into the areas of; i portfolio quality; ii productivity and efficiency; iii financial viability; iv profitability; v leverage and capital adequacy and; vi scale, outreach and growth.
The microfinance providing self-help groups or the NGOs purveyed the following services; 1. Establishment of appropriate regulations, permitting institutions to charge cost-covering interest rates and fees, and to return profit; 3. The salient features of microfinance comprise low cost distribution system, mobile banking, close monitoring and high repayment rates, market interest rates, flexible loan terms and conditions, and low administrative costs.
The concept of microfinance is found to be in operation as a sustainable banking with the poor. However, the system designed for this purpose should enable to measure actual performances and costs.
Technical assistance, including program development, group formation, staff and client training, and financial management. Robinson cited a list of such responsibilities as follows: In their observation the microcredit projects in United States was found much expensive due to excessive overhead costs, lack of small business management skills, higher salaries, high loan losses in some US programs and the double administrative costs to the value of entire portfolio.
But it is not cogent in all cases that the intermediation of financial market through groups for the poor becomes necessary. Group lending scheme provided initiatives to develop microenterprises in collectives, monitor to each other and raise self-employment and social and economic well-being.
Thus, microcredit programs must be expanded and more and more women must be involved". It is expected that groups could have an assertive impact upon qualitative dimensions of poverty and contribute to their empowerment Montgomery, Review their legal, regulatory and institutional frameworks that restrict poor people's access to credit, 2.
In a Mexican study, Patten and Rosengard The relationship between microcredit and women's welfare remained a foremost positive event. With the aim of keeping future access to loan, most borrowers used to repay loans even in distress Zaman, The development of small business management skills and efficiencies and reduction in loan losses may enhance to intensify the small business, microenterprises and the products in the Third World countries like Nepal.
Such an analysis by ignoring gender relations ignores the opportunity cost for women of additional work in income generating activities alongside the necessity to maintain other domestic and productive work".
Top The perspectives of microfinance on poverty alleviation came into scene after Robinson that addressed some key questions on finance and poverty.
As has been universally accepted in the case of financial management, a better indicator of performance might be a ratio of budgeted and actual expenditure. In a keynote address, Yunus mentioned that in a system of allowing everybody access to credit, the excellent repayment ensures to achieve the goal of poverty alleviation.
Those intermediaries also contribute to the social relations among the groups of the borrowers. The prominence of improving access of landless farmers, small producers and other low-income individuals, especially women and vulnerable groups to the credit was underlined in the Copenhagen summit.
But because of lower administrative and overhead costs and lower salaries such a program is most viable in the developing countries. Follow realistic targets for credit provision, 3. The targeted cash transfers may effectively support poorest households substantially. Even in a lower interest rate the savings deposits of poorer households was raising.
But, in the later decade small enterprises have been chiefly financed by microcredit project. Top The performance analysis requires a lot of information about the ongoing programs.
At the same time, some of the enterprises may have been taking extremely heavy debt Broyce.
network of 41 institutions working towards the rapid development of the microfinance industry in the Philippines. The 41 institutions include 34 practitioners and 7 service providers. While membership among the practitioners is currently dominated by non -government organizations (NGOs), the roster of practitioners also includes microfinance-oriented rural banks, one thrift bank, and one credit.
Strategy microfinance is the financial service such as deposits, loans, payment services, money transfers, and insurance to poor and low income households and their microenterprises (Bank, ).
Microfinance, according to Schreiner and Colombet is “the attempt to improve access to.
The Role of Micro-Finance Institutions to the Growth of Micro and Small Enterprises (MSE) in Thika, Kenya (Empirical Review of Non- Micro Finance Institutions (MFI) was pioneered by Non-Governmental Organizations (NGOs) in collaboration with the government.
The government aided the development of Micro Finance and microfinance. This thesis is comprised of five chapters that examine the level of poverty in India, analyze the microfinance industry, and explain the impact of microfinance in India.
Enterprises), a major microfinance oriented NGO, ―it is estimated that there are close to eight million small and micro entrepreneurs who need financial services, and the number is growing by 4% percent annually, the majority of whom are found in the rural areas‖ (PRIDE, ).
With the experience of Bolivia, Rock () mentions that the NGOs dealing on microfinance could be developed into a banking system, although from the profit motive the NGOs and the banks differ in nature. Some of the NGOs were found sustained and effectively operated savings and credit programs.Micro finace ngo thesis