Outreach Performance and Financial Sustainability of Interest-free Microfinance Institutions in Alappuzha, Kerala

The present study attempts to examine the outreach performance and financial sustainability of interest-free microfinance institutions in the Alappuzha district by using various indicators. The empirical analysis reveals that interest-free microfinance institutions in Alappuzha district have had an adequate level of financial sustainability while showing good outreach performance in terms of both breadth and depth of outreach, within a short time from their establishment.

The specific objectives of the research are the following.

1. To measure the outreach performance of IMFIs in Alappuzha district in terms of depth and breadth of outreach.
2. To assess the financial sustainability of IMFIs in terms of profitability, efficiency, productivity and self-sufficiency.
3. To examine whether there is any relationship between poverty outreach and financial sustainability of IMFIs.