Case studies on urban microfinance

CMF Research Associates: Sudha Krishnan, Vanya Pasheva, Manasee Desai, Usha Somasundaram and Keerthi Kumar
Partner Organizations: Multiple Ujjivan; Village Welfare Society (VWS); Working Women's Forum (WWF); Sharada Women's Association for Weaker Sections (SWAWS); Indian Bank; and SEWA Bank
Timeline: Project completed in September 2006

Compared to rural areas, fewer practitioners have been able to offer microfinance, building client loyalty, mitigating risk, and responding to a variety of needs of the diverse urban population. However, if microfinance is to continue expanding outreach and impact the nation's poor, organizations will need to examine and overcome these current constraints.

CMF studied six MFIs to understand the reasons behind the continued low outreach in urban areas and document some strategies that can improve access to financial services in this context. Ujjivan, SEWA Bank, Working Women's Forum (WWF), Indian Bank's Microsate, Branch, Village Welfare Society (VWS), and Sharada's Women's Association for Weaker Sections (SWAWS) were all selected as subjects because as institutions based in cities throughout India with a variety of products, demands, and operating models, each provides an organizational and geographic contrast between start-ups and more well-established MFIs.

This series of case studies provides illustrative examples of not only the challenges specific to the urban market faced by the MFIs but also how they were overcome. This valuable information on an under-studied market will also be useful to other MFIs willing to enter this space.

Downloads: Reaching the Other 100 Million Poor in India: Case Studies in Urban Microfinance