A short while back, Debopam had made a post on microfinance. In a recent issue of "Infrastructure Today", there was an interesting article on how microfinance had been used for a water supply project in Tirupathi.
There were 4 organizations involved - the government, microfinance institutions (MFIs), NGO's and the people in that area. The NGO's helped the people organize themselves into a SHG. The people then took a loan from the MFIs to build the project and the government provided skills training on construction, operation and maintenance.
Overall it was an interesting case on how microfinance could be successfully used to provide rural infrastructure. However, it can only work when the community has the resources to pay back the loan to the MFIs and therefore there should be an ability and a willingness to pay.
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