Successful Rural Finance Institutions

Rural credit has become a prime component of Bank lending operations since its inception. Providing affordable credit to the rural sector was considered warranted on both growth and equity considerations. This paper focuses on the policies, mode of operations, incentives, and financial results of four Asian programs that are considered exceptionally successful. It is part of a broader analytical effort on rural finance issues currently being conducted. This effort aims to define the proper role of governments in rural financial markets and the desirable design features of project and progress interventions in this sector. The paper highlights the elements of successful programs that may be replicable in designing rural finance programs elsewhere.