Commercialization of Microfinance in India

Microfinance is gathering momentum to become a significant force in India. This paper discusses the growth, transformation and commercialization of microfinance organizations (MFO) in India. The basic argument is that most of the early microfinance in India happened through donor and philanthropic funds. These funds came into not-for-profit organizations. However as the activities scaled up, it was imperative to move to a commercial format. The aim is to examine the growth imperatives and the transformation process of Indian MFOs.