One frame on FAI’s research agenda is understanding the role of employment in development. How does employment help people escape from poverty? What kinds of jobs—for instance formal employment, self-employment, casual labor— are best for improving people’s wellbeing, economic and otherwise? What are the characteristics of a “good” job? . . .
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The Impact of a Micro-Overdraft Facility in India
Although micro-credit has been perceived as effective in reducing poverty, in reality, its impact has been modest. One reason could be that most microloans extended to the poor are term loans, which are not well-suited for borrowers with variable or risky income streams, for example, traders needing working capital for purchasing inventory, or farmers who earn lump-sum income after harvest. While the Indian government has been encouraging banks to provide credit in the form of over-draft, term loans continue to remain the predominant credit product. . . .
In 2013, the Rural Financial Institutions Programme represented by GIZ and the National Bank for Agriculture and Rural Development (NABARD), partnered with Mann Deshi Mahila Bank to launch a new overdraft facility serviced through banking agents to traders and farmers selling groceries in rural markets in Maharashtra, India. . . .
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