Home is where the heart is, goes the oft-quoted English proverb and this adage is probably at its truest in India’s villages. At a time, when the government is putting stress on promoting health and hygiene, often the first step towards uplifting the rural populace is to inspire them in working towards having a better home, with proper sanitation facilities.

Given that most MFI customers operate from their homes, it is important to remember that staying in a better home is a key to improving entrepreneurial skills. The presence, or lack, of a pucca house, with proper toilet facilities, could have significant impact on productivity. This goes on to say that if MFIs venture into the segment of providing loans for affordable housing, it would have a direct impact on the core agenda of entrepreneurship of micro enterprises.

Microfinance has proven over the years that its presence acts as an effective mechanism to disseminate crucial information on health, sanitation and other living standards, which are important concerns for people in villages. Microfinance has had positive impact on the living standards of such people, helping them not just to cross the poverty line, but also to empower themselves. Notes from the field recognise that microloans provide the right environment and opportunities for people to improve their standard of living.

While it is not a secret that rising income is among the key factors in aiding development, introduction of housing loans by MFIs will be instrumental in bringing about both economic and social changes.

In simple terms, when MFI borrowers, who mostly run their enterprises from home, the entrepreneur is more likely to succeed, if living in a better home. While a healthy and happy person will always have better productivity, one operating the business from inside a rundown and unhealthy room, with hardly any natural light or ventilation, will have reduced chances of scaling up.