Innovative Strategies Devised by Indian Microfinance Institutions

This study is a discussion on the Non-Governmental Organization-Microfinance Institution Partnership Model and the Securitization Model used by Indian microfinance institutions to achieve cost efficiency. These two models are effective strategies devised and used by efficient and sustainable Indian MFIs to reduce their operating cost and financing cost. Achieving such cost efficiency is crucial for microfinance institutions to attain operational self-sustainability without levying high interest rates. Using the interview method, the study elicits information on these innovative strategies and recommends them to be worthy of emulation for other microfinance institutions operating in the Indian microfinance industry.