AN EMPIRICAL STUDY ON THE SOCIAL PERFORMANCE AND OUTREACH OF GRAMA VIDIYAL MICROFINANCE LIMITED IN TRICHY DISTRICT

Microfinance has become an important tool in providing access to basic financial services to the poor. In India, where 27.5 percent of the population lives below the national income poverty line, microfinance can serve as a viable instrument in reversing or at least slowing down the trend of poverty. Thus this study is an attempt to analyse the performance and outreach of a leading MFI, Grama Vidiyal Microfinance Limited and the relative perception and satisfaction of its clients. It implies that an expansion of coverage needs to be complemented by good financial performance which would include being efficient and productive in operations along with a strong earning potential. The microfinance industry is observed to have a significant ‘learning by doing' component where better understanding of the market translates into higher profitability.