There are two points : About 50% of the disbursed amount goes towards ever-greening of the portfolio of each other (multiple accounts,multiple loans, multiple MFIs all with 99% recovery, at the same place explains this) ; and the rate of growth for some has reached over 60% which is not commensurate with the growth of GDP. Why is it not able to bridge the inequality Gap?
Anjali was a poor wage woman barely survived with 4 other family members when she joined a self help group(SHG) to save a bit everyday out of the earning. She handed over about Rs. 10 to the SHG kitty as her share.
She and all her friends at the SHG wondered as to how far this small savings would take them as the requirements were bigger, and even if they managed the money, there were other reasons why they could not have taken up the journey towards development. But micro-finance came up, and money was at last became available. But the limitations did not go away. To take a step forward has been still difficult; going from that point to the next requires hand-holding of some orgaization which is ot always forthcoming.
The aspirations have gone high. The capabilities have not exactly developed. It has to be bottom up, and everybody should feel the height.