Advanced Search
MyIDEAS: Login

The Evolution of India’s microfinance market – just a crack in the glass ceiling?


Author Info

  • Schmidt, Oliver


A crisis of microfinance in Andhra Pradesh (AP) is of highest interest to microfinance practitioners and scholars and politicians around the world, because some of the world’s largest microfinance institutions (MFIs) are based out of AP. The current crisis has shaken microfinance in India and beyond and fuelled a heated debate on the (de)merits of commercialization, going public and credit-drive of MFIs. However, regulators and politicians are liable for creating an adverse institutional set up (or ‘choice architecture’) – in many places but in India even more. The article shows which poor choices of MFIs flowed from the adverse choice architecture. In particular it highlights the failure of India’s regulators to create formal space for micro-savings and the tendency of politicians to look at (rural) credit as a means of patronage. It concludes that the current crisis is an expression of changes in power relations within MFIs, among practitioners in the MF sector and between the MF sector and the polity/community it operates in.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27142.

as in new window
Date of creation: 01 Dec 2010
Date of revision:
Handle: RePEc:pra:mprapa:27142

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page:
More information through EDIRC

Related research

Keywords: Microfinance; India; Andhra Pradesh; Regulation; Political Economy; Moneylender;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27142. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.