Profit Empowerment: How Donors push Microfinance away from its primary objective

In this paper we try to raise caution against the consequences of the overwhelming drive for microfinance institutions to become financially self-sustainable-more often than not pushed into this by international organizations. Such a push can have severe consequences, ranging from mission drift to questionable practices employed by institutions. Focusing on India, we discuss the extent to which donors influence the microfinance sector and identify the role that international organizations play in pushing microfinance institutions away from their primary objective of delivering financial services to the poor.