• Rajendra Prasad

Microfinance has assumed a great importance in the financial inclusion of hitherto excluded sections of the society and considered as one of the greatest innovation of modern times in finance. This has played unprecedented role in both developed and developing nations of the world. However, it has been limited by availability of resources at a reasonable cost and the result is that though, it has freed the masses from the vagaries of moneylenders, who exploited them by charging exorbitant rate of interest, the rates offered by MFIs is still high in countries like India, compared with the cost of credits from formal financial institutions, i.e. banks. The reason for high rates to the end beneficiary is that the MFIs themselves are made to depend on very high cost funds coupled with higher operational cost. Present paper is an attempt to look at the reasons for high cost and possible solutions to reduce them to enable MFIs serve the masses better. The paper is based on the research, basis the secondary data sources from RBI, Sa-dhan and MFIN. The values in the paper are presented in INR (`) crore, where one unit of INR is equal to 0.014 USD and a crore equals 100 billion.

"Indian Micro Finance Institutions: Issues in Resources Raising", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 1, page no.106-117, January-2019, Available :http://www.jetir.org/papers/JETIR1901115.pdf

"Indian Micro Finance Institutions: Issues in Resources Raising", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 1, page no. pp106-117, January-2019, Available at : http://www.jetir.org/papers/JETIR1901115.pdf