Par Sanjeev Kapoor, Gaurav Sinha
Product development process occupies a significant position in the life cycle of any organization. Microfinance Institutions (MFIs) have not been an exception to this, despite huge demand from the customers. This paper attempts to map organizational factors in the new product development by some of the MFIs operating in north India. The paper also examines the changes that have taken place in the institutional culture for adopting the new product. Based on this analysis, the study supports the hypotheses that MFI’s own institutional strengths and weaknesses rather than market opportunities, play more important role in designing the microfinance products. It further points out that at present, given the huge market potential and low competition, whatever loan products are developed, would be successful among the customers.
JEL Codes: G21, M19, M31, L31, O31, D20, D22