Sustainability and outreach in microfinance institutions in India: an ethical analysis

Milind SATHYE, Benugopal Mukhopadhyay, Suneeta SATHYE

    Research output: Contribution to journalArticle

    2 Citations (Scopus)
    4 Downloads (Pure)

    Abstract

    We use an ethical analysis framework to explain the tensions that microfinance institutions (MFIs) face in following ethical practices when faced with the competing objectives of financial sustainability and social outreach. The extant view is that these institutions have to resort to unethical practices such as usury interest rates and forced loan collections to survive. After a case study of five MFIs, we find that this is not the case, and competing objectives can very well be achieved following ethical practices. This article is set against the background of suicides by microfinance borrowers in India.
    Original languageEnglish
    Pages (from-to)358-375
    Number of pages18
    JournalCanadian Journal of Development Studies
    Volume35
    Issue number3
    DOIs
    Publication statusPublished - 2014

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    sustainability
    India
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    interest rate
    loan
    analysis

    Cite this

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    title = "Sustainability and outreach in microfinance institutions in India: an ethical analysis",
    abstract = "We use an ethical analysis framework to explain the tensions that microfinance institutions (MFIs) face in following ethical practices when faced with the competing objectives of financial sustainability and social outreach. The extant view is that these institutions have to resort to unethical practices such as usury interest rates and forced loan collections to survive. After a case study of five MFIs, we find that this is not the case, and competing objectives can very well be achieved following ethical practices. This article is set against the background of suicides by microfinance borrowers in India.",
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    Sustainability and outreach in microfinance institutions in India: an ethical analysis. / SATHYE, Milind; Mukhopadhyay, Benugopal; SATHYE, Suneeta.

    In: Canadian Journal of Development Studies, Vol. 35, No. 3, 2014, p. 358-375.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Sustainability and outreach in microfinance institutions in India: an ethical analysis

    AU - SATHYE, Milind

    AU - Mukhopadhyay, Benugopal

    AU - SATHYE, Suneeta

    PY - 2014

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    N2 - We use an ethical analysis framework to explain the tensions that microfinance institutions (MFIs) face in following ethical practices when faced with the competing objectives of financial sustainability and social outreach. The extant view is that these institutions have to resort to unethical practices such as usury interest rates and forced loan collections to survive. After a case study of five MFIs, we find that this is not the case, and competing objectives can very well be achieved following ethical practices. This article is set against the background of suicides by microfinance borrowers in India.

    AB - We use an ethical analysis framework to explain the tensions that microfinance institutions (MFIs) face in following ethical practices when faced with the competing objectives of financial sustainability and social outreach. The extant view is that these institutions have to resort to unethical practices such as usury interest rates and forced loan collections to survive. After a case study of five MFIs, we find that this is not the case, and competing objectives can very well be achieved following ethical practices. This article is set against the background of suicides by microfinance borrowers in India.

    KW - Microfinance

    KW - ethical analysis

    KW - India

    KW - sustainability

    KW - institutions

    U2 - 10.1080/02255189.2014.936835

    DO - 10.1080/02255189.2014.936835

    M3 - Article

    VL - 35

    SP - 358

    EP - 375

    JO - Canadian Journal of Development Studies

    JF - Canadian Journal of Development Studies

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