Bandhan began as a small economic non-profit in West Bengal, India. Its mission: alleviate poverty. Its founders believed that the best way to accomplish this mission would be to open up avenues of economical empowerment to disadvantaged women. This way, they reasoned, these women would not only lift themselves up out of poverty, but would also become engines of economic growth within their communities. By assuring the prosperity of families and communities, Bandhan’s vision for systemic economic improvement would become a reality.
Microfinance is getting quite some attention nowadays for both positive and negative reasons. Some say it can be a solution to address poverty or to facilitate financial inclusion. Others opine that it creates more problems for low-income people, by serving as a debt trap. As far as investment is concerned, though, it’s fairly easy to answer the question whether or not it’s a good idea investing in a microfinance business.