Sreyas:  More than just “Credit”; a way of “Life”

Over the decades, microfinance has demonstrated that poor people are viable financial-service customers. There has been a surge in world attention on microfinance and its power to fight poverty. Apart from all these achievements, there is still a long way to go to fill the demand-supply gap, especially in rural areas where delivering financial services presents particular challenges.

Despite the vast expansion of the formal credit system in the country, we have not been able to address adequately the need of small loan requirement of the poor. The banks have not been inclined in this kind of lending as it involves high risk and high transaction cost and too many small borrowers.

Access to small amounts of credit at reasonable interest rates, poor people can set up small businesses. Experience shows that poor people are a good risk, with higher repayment rates than conventional borrowers.Faced with such constrains.

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