Page 332 - DMGT509_RURAL MARKETING

Unit 17: Role of Microfinance in Rural India

One of the unique aspects of this initiative is the use of technology to bring alive the Notes
benefits of our brands in a simple and compelling manner. The other unique characteristic
feature of this initiative is the effective use of popular traditional symbols with technology
to create more acceptance. For example, the brand films and hygiene messages are shown
to the consumers through the use of Palki.
Questions
Analyse the case and discuss the case facts.

17.7 Summary

 The potential for growing Microfinance institutions in India is very high.
 Major cross-section can have benefit if this sector will grow in its fastest pace. Annual
growth rate of about 20 % during the next five year.

 The loan outstanding will consequently grow from the present level of about 1600 crores
to about 42000 crores Annual growth rate of about 20 % can be achieved during the next
five years.
17.8 Keywords

Companies Act 1956: For companies that are already registered under the Companies Act, 1956,
if the central government is satisfied that the objects of that company are restricted to the
promotion of commerce, science, art, religion, charity or any other useful purpose
Microfinancing: Micro financing has become important since the possibility of a sub 1,000
mobile handset has been ruled out in the near future. Rural India can generally afford handsets
in the price range of 1,500-2,000.
Rabo India Finance: Rabo India Finance Pvt Ltd. has established agri-service centres in rural
areas in cooperation with a number of agri-input and farm services companies

17.9 Review Questions

1. Describe the legal and regulatory framework for the microfinance institutions in India.
2. Explain the profile of Rural India.
3. What do you know about non-traditional markets?

4. Discuss the Marketing of Microfinance products.
5. Discuss the Rural India and Microfinance.
6. What are the success factors of Microfinance in Rural India?

7. Explain the contract farming and credit bundling.
Answers: Self Assessment

1. Microfinance 2. Operation
3. SIDBI 4. Financial
5. Low 6. Banks
7. Rural 8. Creditworthiness

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