Marketing Strategies in the Microfinance Sector : A Case Study on Hand in Hand Microfinance Pvt. Ltd

The microfinance sector in Southern India has evolved to be more competitive. The Southern Indian state of Tamil Nadu, which has spawned several Self-Help Groups (SHGs), is a home to a wide range of Non-Governmental Organisations (NGOs) and Microfinance Institutions (MFIs). As more players, both NGOs and Non-Banking Financial Companies (NBFCs), foray into Tamil Nadu's vibrant microfinance sector, marketing strategies assume significance. Despite the influx of Grameen replicators and the drastic changes in the policy environment brought about by the recent microfinance crisis in Andhra Pradesh, Hand in Hand, an NGO providing microfinance, has succeeded in enhancing the loyalty of its SHG members. A qualitative study has been carried out on Hand in Hand's marketing strategies, wherein a senior executive and five microfinance clients participated. The socioeconomic impact brought about by Hand in Hand has also been discussed in detail