With a population of more than 1.2 billion, India is the world’s largest democracy. Over the past decade, the country’s integration into the global economy has been accompanied by economic growth. India has now emerged as a global player.
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Glimpses of people who have benefitted from the microfinance project:Sumita DasKaibortapara, Sualkuchi, Assam“We were struggling to meet our daily needs. We had to borrow money. Life was hard,” said Sumita... Show More + Das, 24, about her life few years ago.Sumita, her husband Champak Das, and their son subsisted on her husband’s weekly wage of Rs.300. Sumita earned another Rs.200 by weaving traditional Assamese clothing like mekhala chadar and gamchas woven on a single loom in their cramped one-room house. “Then, I took a loan from Bandhan, ( a microfinance company) bought more looms and raw material. My husband began to work from home. We now have three looms and one of our neighbors works for us,” she said.“Now, we earn Rs.9,000 a month. We have a color television, a home theatre, a fan, a mobile phone and a power inverter. We also send our only son to a private school. After paying a monthly installment of Rs.1,680, we save Rs.3,000 every month. All this was unthinkable for us few years bac Show Less -
ChallengeGlobally, 1.3 billion people live in extreme poverty. The CGAP-Ford Foundation Graduation Program was designed to address the reality that there are few sustainable pathways out of extreme... Show More + poverty for the most vulnerable. Both microfinance and livelihoods programs tend to reach people at, or immediately below, the poverty line – but not those who are extremely poor: those at the lowest level of the economic ladder. While they do benefit from social safety net programs, which typically include cash transfers, food aid and/or public-works employment, most such programs lack effective exit strategies and fail to prepare beneficiaries for market activities. So, once the support ends, beneficiaries fall back into the ranks of the food-insecure. The development problem identified was two-fold as both a targeting challenge and an approach challenge. Although the poorest of the poor are those most in need, they are often inadvertently overlooked by many development interventions. Show Less -
Bank Group ContributionData: The World Bank is a leading global source of data on financial inclusion, including through the Global Findex survey, Enterprise Surveys, and the Global Payments Systems Survey.... Show More + Country level surveys and assessments underpin public sector reforms and private sector actions, and inform a coordinated and effective approach. They also enable progress in reaching financial inclusion targets and in implementing actions outlined in financial inclusion strategies, as well as the impact of those actions. The Consultative Group to Assist the Poor (CGAP), a multi-donor partnership supported by over 30 development agencies and private foundations and housed at the World Bank, also provides important research and thought leadership for financial inclusion and microfinance. Lending: The World Bank has an active lending portfolio for access to finance of more than $3 billion globally, including $600 million in IDA and $1.4 billion in IBRD lending, in more than 60 co Show Less -
WASHINGTON, DC, June 1, 2010 ─ The World Bank approved two projects worth US$407 million to India, consisting of a US$300 million credit/ loan for the Scaling up Sustainable and Responsible Microfinance... Show More + Project and a US$107 million loan for the Statistical Strengthening Loan.While India has a well-developed banking system and there has been significant progress in banking sector reforms, performance, and stability, a significant portion of its population is still estimated to have only limited or no access to financial services.“Increasing access to finance for millions of India’s financially under-served people remains a challenge,” said Niraj Verma, World Bank Senior Financial Sector Specialist and project team leader. “India’s microfinance sector has grown exponentially in recent years and has contributed to reducing the gap between the unmet demand and supply of financial services for households and microenterprises – but there is still a long way to go. In addition to providing fu Show Less -