Open Access Open Access  Restricted Access Subscription or Fee Access

Expanding Role of Microfinance Institutions to Combat Multidimensional Poverty

Shabnam Lutafali, Quinn Pogvara, Faiza Khoja


Using ‘basic needs’* approach, an organogram is proposed that depicts role of Microfinance Institutions (MFIs) to go beyond providing business loans to the ultra-poor** by offering them an array of products and services that can materially and socially have a positive impact on their quality of life. It is a multi-staged approach to eradicate poverty. The paper is based on feedback organogram model. Initially, in the pre-organogram stage, the MFIs work with Non-Governmental Organizations (NGOs) to identify un-banked individuals, with entrepreneurial potentials to offer them business loans. Once the initial client base is established, the organogram model kicks in. Through feedback mechanism from the clients to MFIs, this model shapes the policies of MFIs to create skills and knowledge based communities through a framework of coordinated dialogue between its clients and its banking operations. This paper examines Pakistan, India, and Bangladesh’s MFIs as a case study based on these propositions. The model delineates a feedback mechanism between the lending institutions and their clients to develop quality control mechanisms to ensure best practices and bring self-sustainability to their banking operations.


Multi-dimensionally poverty, basic needs approach, quality of life, skill based communities, feedback mechanism

Full Text:


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information. Also: DOI is paid service which provided by a third party. We never mentioned that we go for this for our any journal. However, journal have no objection if author go directly for this paid DOI service.