Chapter 20
A Study of Microfinance on Sustainable
Development
Shital Jhunjhunwala and Prasanna Vaidya
20.1 Introduction
In 2015, United Nations Organization (UNO) announced the Sustainable Develop-
ment Goals (SDGs) which are adopted especially by South Asian countries to address
the sustainable issues such as poverty, gender inequality, education, health, economy
and so on. Despite the economic and technological breakthrough, South Asian coun-
tries account for 36% of the world’s poor [1] and 736 million people are living on
less than $1.90/day [2].
The concept of credit was a relevant and useful programme which took a big
bounce in the 1970s when Yunus’s Grameen Bank in Bangladesh began to institu-
tionalize. Later, he was awarded a Nobel Peace Prize for his microcredit movement
contribution on the modern concept of microfinance in 2006 [3]. The idea of microfi-
nance was introduced to help, uplift the living standard of poor people and empower
women. Microfinance is the arrangement of minimal credits to the poor people, to
enable them to participate in new productive business activities and to extend existing
ones [4]. It allows them to join in self-employment projects that contribute to generate
income and improve their social status and standard of living. However, microfinance
includes a broader range of services overtime. Microfinance is a developmental tool
for providing financial services, namely: credit, saving/deposit, insurance, leasing
and money transfer, and repayment services. It also includes social intermediation
The original version of this chapter was revised: The figures 20.1 and 20.4 are updated with the
correct figures. The chapter and book have been updated with the changes.. The correction to this
chapter is available at https://doi.org/10.1007/978-981-15-3647-2_44
S. Jhunjhunwala (B ) · P. Vaidya
Department of Commerce, Delhi School of Economics, University of Delhi, North Campus, New
Delhi, India
e-mail: casjhunjhunwala@gmail.com
P. Vaidya
e-mail: prasanna.vaidya2@gmail.com
© Springer Nature Singapore Pte Ltd. 2020, corrected publication 2020
P. K. Kapur et al. (eds.), Strategic System Assurance and Business Analytics,
Asset Analytics, https://doi.org/10.1007/978-981-15-3647-2_20
275