Poverty Outreach of Microfinance in Four Indian States

Summary of Findings Across Four States of Uttar Pradesh, Madhya Pradesh, Odisha and Bihar

An examination of the portfolio of microfinance institutions across the four PSIG states revealed that nearly half of new MFI client recruitments are happening between the $1.25 to $2.5 2005 PPP Poverty Line segment, with a third between $1.25 and $1.88 2005 PPP Poverty Line segment. Against this encouraging sign it is to be noted that there is ample scope to expand the access of microfinance in the PSIG states below the $1.25 2005 PPP Poverty Line, especially to the poorest of the poor, as well as a need to spread its outreach to specific pockets hitherto highly underpenetrated.