From micro to meso: The next frontier of lending : Dr. M S Sriram

In his latest Business Standard column, Dr. M S Sriram, Public Policy area, argues that while India’s microfinance sector “works, but at a modest growth rate”, its long-standing model has reached the limits of expansion.

Drawing on three decades of sectoral evolution, in the piece ‘Rethinking microfinance,’ he contends that recurring crises, borrower stress and policy responses rooted in legacy thinking signal the need for a fundamental rethink. The way forward lies in building pathways to “meso-finance” for growing enterprises and strengthening household savings as a buffer against economic shocks.