Financial Sustainability of Microfinance lenders: Experts View
Published: 2025
Author(s) Name: Vipani Kajal Jitendrakumar, Shakina Tabbsum Arifbhai Munshi |
Author(s) Affiliation: Gujarat Technological University, Ahmedabad, Gujarat, India.
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Abstract
The purpose of this study is to gain insight into the financial sustainability of microfinance lenders in India from internal experts’ view. The research paper followed the variables such as financial sufficiency, operational efficiency, regulatory compliance, and financial inclusion. A structured questionnaire was prepared to conduct telephonic interviews with experts from various microfinance lenders. The research paper used MAXQDA 24 software for qualitative data analysis and chi square test is used for hypothesis testing. Results showed that ROA (Return on Assets) is the primary metric to assess financial sustainability. It is also found that automating loan disbursements and repayments through digital platforms is the most effective strategy for improving operational efficiency. According to the experts’ views, regulatory changes (such as interest rate caps or lending norms) limit the institution’s ability to serve clients, but do not impact sustainability. This paper is limited to the experts’ view on certain variables only, variables can be explored by other researchers.
Keywords: ROA, Financial Sustainability, Regulatory Changes, Financial Inclusion
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