FINANCING POOR AS BANKABLE OPPORTUNITIES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the core premise behind treating the financing of the poor as a bankable opportunity?
The poor, when provided with appropriate financial services, are reliable borrowers with high repayment rates, making lending to them a viable and profitable business rather than mere charity.
What is the minimum loan amount under MUDRA's Shishu category for poor micro-entrepreneurs?
Up to Rs. 50,000 for smallest micro-enterprises.
Who pioneered the concept of microcredit as a bankable opportunity for the poor through the Grameen Bank model?
Muhammad Yunus pioneered microcredit through Grameen Bank in Bangladesh, demonstrating that the poor could access credit without collateral and repay loans at rates exceeding 95%.
What is the NABARD refinance facility called that supports rural cooperative banks lending to the poor?
NABARD provides refinance through its Rural Infrastructure Development Fund (RIDF).
What is the 'Bottom of the Pyramid' (BOP) concept as applied to rural banking?
The BOP concept, articulated by C.K. Prahalad, identifies the large low-income population segment as an untapped market where financial institutions can earn profits while promoting development.
What is the concept of 'doorstep banking' and how does it benefit rural poor borrowers?
Banking services delivered at customer's location, reducing travel barriers.
How does Self-Help Group (SHG) linkage banking convert poor borrowers into bankable clients?
SHGs pool small savings, build internal credit discipline, and create a collective track record that banks use as a proxy for creditworthiness, reducing transaction costs and risk for lenders.
What is the repayment rate advantage that SHG-linked borrowers demonstrate compared to individual borrowers?
SHG borrowers show near 100% repayment due to peer pressure accountability.
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