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Microfinance Institutions: The Winding Journey Through the Hills of Poverty Alleviation

The functionality of Microfinance Institutions is not only demand driven but also to smoothen consumption, coping with emergencies, acquiring assets and paying for expenditure. Poverty persists not just because of absence of or inadequate income but because of risks and vulnerability of that income, and these institutions cannot be relied upon to deliver sustained income growth and falling poverty rates, not least because of the opportunity cost of time taken up by such activities.