An Industry Note Microfinance Institutions Promoting Market Linkages in India
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This note describes the need for forward and backward market linkages and provides an overview of the various methods adopted by MFIs to address the constraint of market linkages, particularly in areas such as agriculture, fisheries, and dairy. These market linkages not only helped MFIs in reducing risks on the loans given to clients but also encouraged rural entrepreneurship, which ultimately had a positive outcome on the loan portfolio of MFIs. With higher loan recovery rates, enhanced portfolio, and better outreach, MFIs saw immense business sense in creating market linkages for their clients.
Microfinance institution (MFI), Backward linkages, Forward linkages, Microenterprises, Supply chain infrastructure, Moneylender, Middlemen, Agriculture and Business Development Services (AgBDS), Fisheries, Dairy, Export cluster, Revenue generation, Credit absorbing capacity, Better price realization, Scaling up of operations, Reduced risk on loans, Vijay Mahajan, Mohammad Yunus
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