Abstract
The present study was undertaken to analyse the impact of the recent microfinance loan waiving programme of the Assam Government on microfinance institutions (MFIs). It was found that although the loan waiving programme had no impact on the NABARD-sponsored self-help group bank linkage (SBL) programme, it harmed the MFIs. After the implementation of the programme, there was a continuous decline in the number of MFI branches in the state, as well as their client outreach and annual loan disbursement. Further, some of the borrowers stopped the repayment of monthly instalments of their loans taken from the MFIs with the expectation of such programmes in the future.
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