Hinduism and Microcredit

Abstract

Purpose – The purpose of this paper is to show that the microfinance industry practices can benefit from the culture and spiritual traditions of a country. Design/methodology/approach – The authors use the Bhagavad Gita and the codes of Manu and Kautilya to describe the background of Hindu teaching and practical wisdom. The authors use a case study of a Hindu microfinance institution (MFI). Findings – The authors find that Indian spirituality is a case-based application of learning through experience. Research limitations/implications – The case used in this study is one of a religious organization led MFI. It would be interesting to have follow up case studies of for-profit organizations and study their philosophy and links to spiritual traditions. Practical implications – The authors find that business in general, and MFIs in particular, should adopt risk-based pricing. The specificities of each product, its delivery and price should be based on continuous learning from experience of helping customers. ...