Assessing financial sustainability as a key indicator for business transformation of microfinance institutions: A study in India

Abstract

Access to financing is acknowledged to play a notable role in the development of economy by efficiently allocating resources from excess units to units in need. If microfinance institutions (MFIs) can maintain good financial performance, the positive effects they have on the financial wellbeing of those in need will continue. To promote sustainable global development, sustainable financial practices are essential. Previous studies have been motivated by the economic crisis to highlight the necessity of assessing and managing financial sustainability in business. India is the top borrower in South Asia, and hence, this study is significant for the MFIs in India. This study’s goal is to look into the pattern of Indian MFIs’ financial (1) success from 2014 to 2017. The result shows that women are consistently being the highest borrowers.