Microfinance Ngo Vs Banking

collateral. The banker in India needs to recognise that high repayment rates of SHGs is not an inherent structural feature of SHGs but a commitment to group values. The role of NGOs in investing groups with values through human capital is an undeniable specialisation. In the words of economist Jagdish Bhagwati: “Those values (of civil society and of democracy) are better advanced…by the political and financial support of the numerous and growing NGOs, both here and abroad, that work ceaselessly to nudge the world in the right direction.” The banker must accept that this is a role which the NGO, as a committed social engineer, is better suited to execute. This is not to deny qualities of