Abstract

The paper looks at the growth and transformation of microfinance organisation (MFO) in India. We first, define microfinance and identify its “value attributes”. Having chosen only those MFOs that have microfinance as the core, we look at the transformation experiences. To understand the transformation experiences better, we identify issues that trigger transformation via: size, diversity of services, financial sustainability, focus and taxation. Having identified these we look at transformation experiences internationally. We examine the Bolivian, Kenyan, Bangladeshi and the Indonesian experience. Each of these countries has important lessons on transformation to offer, which is examined in detail. Having examined the various options for moving into the mainstream, we conclude that there is no ideal or easy path for MFOs to mainstream in India. This has implications for regulatory framework. This study is significant in the light of its contents, that purposes of include various aspects of Indian Microfinance and Self- Help Groups: An evaluation of their impacts in India’s economic transformation.

Keywords: Microfinance, SHGs, Mainstream, Transformation, Evaluation, Impacts