Version 1
: Received: 11 July 2023 / Approved: 12 July 2023 / Online: 12 July 2023 (11:08:33 CEST)
How to cite:
Beg, K.; B.Padmapriya, D.; Ahmad, M.M.; Tanzeem Raza, M. Mission Drift i.e. Sustainability vs Outreach: Empirical evidence from Microfinance Institutions in India.. Preprints2023, 2023070812. https://doi.org/10.20944/preprints202307.0812.v1
Beg, K.; B.Padmapriya, D.; Ahmad, M.M.; Tanzeem Raza, M. Mission Drift i.e. Sustainability vs Outreach: Empirical evidence from Microfinance Institutions in India.. Preprints 2023, 2023070812. https://doi.org/10.20944/preprints202307.0812.v1
Beg, K.; B.Padmapriya, D.; Ahmad, M.M.; Tanzeem Raza, M. Mission Drift i.e. Sustainability vs Outreach: Empirical evidence from Microfinance Institutions in India.. Preprints2023, 2023070812. https://doi.org/10.20944/preprints202307.0812.v1
APA Style
Beg, K., B.Padmapriya, D., Ahmad, M.M., & Tanzeem Raza, M. (2023). Mission Drift i.e. Sustainability vs Outreach: Empirical evidence from Microfinance Institutions in India.. Preprints. https://doi.org/10.20944/preprints202307.0812.v1
Chicago/Turabian Style
Beg, K., Md. Moneef Ahmad and M. Tanzeem Raza. 2023 "Mission Drift i.e. Sustainability vs Outreach: Empirical evidence from Microfinance Institutions in India." Preprints. https://doi.org/10.20944/preprints202307.0812.v1
Abstract
Microfinance banks and Institutions must simultaneously provide micro financial loans to unprivileged and poor people as well as self-sustaining, which means covering enough costs to eliminate the need for subsidies. To ascertain if Micro-finance Institutions can successfully navigate the double challenge of financial self-sustainability (FSS) as well as outreach to poor clientele and women borrowers i.e. outreach. There is no other alternative but to analyse the balance between FSS and outreach indicators of MFIs. The research goal is to see whether there was any compromise between the self-sustainability and outreach towards poor and female customers. The study used data of 100 MFIs driven from the database of microfinance information’s exchange (MIX) market with the objective to determine trade off between financial sustainability and outreach. The study found financial performance variables are positively and significantly related with average loans size which shows a mission drift, in which MFIs serve wealthy clientele. However, Indian MFIs have a extremely high outreach with their female clientele, confirming MFI's social commitment to objective of women’s empowerment. The research recommends to the Policy-makers that MFIs are compromising their financial services to underprivileged people and women in order to be financially sustainable. To guarantee that institutions are focused on outreach to underserved people in rural areas, the government should reform the policies regarding governing MFIs.
Keywords
Financial sustainability; Microfinance; Mission Drift; Welfarist; Institutionalist; Social Performance
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
