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.
SATHYE, M., Mukhopadhyay, B., & SATHYE, S. (2014). Sustainability and outreach in microfinance institutions in India: an ethical analysis. Canadian Journal of Development Studies, 35(3), 358-375. https://doi.org/10.1080/02255189.2014.936835