THE SYSTEMATIC LITERATURE REVIEW AND RESEARCHES ON DEVELOPMENT OF MICROFINANCE INDUSTRY IN INDIA (Published)
Microfinance is the array of financial services, including loans, savings and insurance, available to Poor entrepreneurs and small business owners who have no collateral and would not otherwise qualify for a standard bank loan. Recent proliferation of microfinance market has swiftly increased the competition in microfinance Indian market, new technology and new devices are emerging at phenomal speed. As the number of microfinance application is increasing at daily rate, quality is becoming major issue. So microfinance system organization need some quality model as guideline to improve and maintain quality of application under development .microfinance application mainly depends on users response and user acceptance so they need maintainability, usability, suitability etc. this research paper presents microfinance recent development model focusing on key quality characteristics. This study is applicable in the context of social development at this time when social services delivery is not only poor but at dismal level. Recent proliferation of microfinance market has swiftly increased the competition in microfinance developmental Market, new technology and new devices are emerging at phenomenal speed. As the number of microfinance applications is increasing at daily rate, quality is becoming major issue. So Microfinance industries need some quality model as guideline to improve and maintain quality of application under development. MicroFinance market mainly depends on poor people of loan response and poor people of loan acceptance so they need maintainability, usability, suitability etc. This research paper presents microfinance market quality model focusing on key quality characteristics mainly extracted from excellent standard quality model, which effect quality of microfinance market. This paper aims to provide a synthetic review of the literature on the Microfinance and development. Systematic Review of literature (SLRs) justifies the reason for our research. It demonstrates the topic. It narrates a brief elaboration of prior studies. Prior research will help us to ensure that we have included all of our major relevant constructs in our study. It talks about the knowledge of our field which allows us to identify the gap which our research could fill and also strength’s the topic that we chosen for our research. The literature review will help us to find and select appropriate measurement instruments. (P.Shakila, 2014) The literature review is needed because it is a necessary skill both for researchers and for practitioners of a profession which claims to be founded on a knowledge base and also to locate and summarize the findings of research on a given topic not uncritically but assessing the evidence and for argument to sustain the conclusions. It is also useful to obviate the need for fresh research or to replicate the study. (P.Shakila, 2014) Polit and Hungler in the year (2001) stated that the term “Literature Review” is often used to cover both the process of searching for relevant literature and the critical reporting of the literature. Cormack in the year (1991) stated that “Literature Review” means to systematically read, critically appraise, and then synthesize the material into a coherent, structured, and logical review of the literature. This paper presents a systematic review of the current use of those modern microfinance developments for the microfinance systems and their actual level. Microfinance modern recent development prediction is a significant part of microfinance quality assurance. A problem is microfinance is to expect the possibility that the microfinance contains problem. Problem in microfinance system are major problems that need to be resolved. The problem prediction in microfinance system is significant because it can help in directing test effort, reducing cost, and increasing quality of microfinance development and its reliability .in this research paper I have studied various predictions, examined, & the performance of these recent microfinance development of India. The main aim is to examine the performance of recent development of microfinance in microfinance a problem prediction. Problem prediction using these techniques helps in improving the quality of the microfinance recent development
Keywords: Development, Development Quality, Economic Development, Economic Development Attitude, Entrepreneurship Development, Evaluation and effectiveness of Microfinance, India Economy, Microfinance Institutions, Microfinance and Development, Satisfaction of Access & Rights to Justice of Poor People, Systematic Literature Review, Systematic Review
THE EFFECT OF LENDING METHODOLOGY ON PERFORMANCE OF LOAN PORTFOLIO AMONG SELECTED MICROFINANCE INSTITUTIONS IN KENYA (Review Completed - Accepted)
This paper examines the impact that lending methodology on the performance of loan portfolio based on a study of microfinance institutions in Kenya. The specific objectives of the study were to establish the effect of group and individual lending on performance of loan portfolio in micro-finance institutions, and to establish the effect of moderating factors on performance of gross loan portfolio. Secondary data was used in the study of 8 out of 56 microfinance institutions under umbrella Association of Microfinance Institutions of Kenya (AMFI). This was motivated by availability of data. Panel data analysis was applied to test hypothesis that there is no relationship between group lending on performance of loan portfolio. After running a regression in which loan portfolio performance is the dependent variable, the study found a positive significant coefficient of 0.79 and (p=0.42) on group lending without moderating factors. When moderating factors were included the coefficient becomes 0.38 and (p=0.19). The null hypothesis was therefore rejected. There was no significant relationship of individual lending on performance of loan portfolio in the regression despite finding a positive coefficient of 0.41 and (p=0.27) without moderating factors and 0.16 and (p=0.58) when moderating factors were added. Therefore, the author accepted the null hypothesis which states that there is no effect on individual lending on performance. The third hypothesis which stated that moderating factors do not affect performance of loan portfolio was also rejected, since the study found significant relationship between moderating factors and lending methodology on loan portfolio. From the regression results, transaction cost and credit risk have a negative relationship on the performance of gross loan portfolio/assets. The researcher recommends to MFIs to use group lending as a result of security/collateral as it reduces adverse effects. Furthermore managers should improve business performance through cost minimization strategies. It is further recommended that MFIs managers should consider diversifying their revenue generating activities rather than concentrating on only one source of income
Keywords: Kenya, Lending Methodology, Loan Portfolio, Microfinance Institutions, Performance
Determinants of Growth Of Microfinance Organisations in Kenya. (A Case Study of Small Micro Enterprise Programme – Smep, Voi.) (Published)
The main objective of this study was to determine the key factors that determine the growth of the microfinance institutions. The target population was the people that participated in these MFI’s which in many cases were found to be women groups, middle and low income earners in Voi, however concentration was mainly on the individuals / groups that were registered with the SMEP in Voi.
The method used for this research was exploratory survey. Data collection methods such as questionnaires, observation and interviews were used. Sampling technique was used and results analyzed qualitatively and quantitatively in terms of descriptive statistics. Pie charts, bar charts and frequency distribution tables were incorporated in data presentation. Finally, conclusion on the factors determining the growth of microfinance institutions in Kenya were arrived at and areas for further research pinpointed. Recommendations for better operation and handling of the microfinance were noted
Keywords: Descriptive, Earners, Exploratory Survey, Microfinance Institutions, Sampling
