Problems in operational efficiency and responsiveness of the Microcredit institutions: A Case Study

Dr.Aparijita Biswal; Suresh Kumar Patra

Volume : V, Issue : VIII, August - 2015

Problems in operational efficiency and responsiveness of the Microcredit institutions: A Case Study

Dr. Aparijita Biswal, Suresh Kumar Patra

Abstract :

Micro credit institutions are the intermediate institutions operating in between the other financial institutions and the SHG members. Besides the mere function of extending loan to the SHG, they hold the most urgent and important responsibility to address the social needs and issues. Since the idea of these institutions was started to take care of the social needs of the marginalized community, it should not be compromised at any level and cannot be compensated by meeting some economic requirements. In this context, the present study attempts to know and understand the rate of interest structure, operation and problems faced by these institutions from different aspects. The study also highlights and includes the valuable suggestions given by the authorities of these institutions. The study reaches at a point that micro credit mechanism has definitely a long lasting social and economic impact. It is a feasible and practical instrument for the socio–economic empowerment of the women community. Therefore, steps and incentives should be taken to make this programme more operational and extensive. Misappropriations in fund management, administrative mismanagements, delays in disbursing the loan etc. should be minimized to a large extent in order to realize the long lasting benefits of this mechanism