Is microfinance really success in India?

Microfinance Vs Financial Inclusion
After the Pokharan Nuclear testing our H’able Prime Minister Sri Atal Bihari Vajpayee said “At last Bhudha smiling” and whole country celebrates that success because after that India became a Nuclear power country. Just like same why not India smiles when multiple MFI’s and agencies said microfinance has successes in India? Why not India has super economy in world?
What is a reason of failurity of microfinance in India?

Microfinance concept is a really a good weapon or tools for
Poor,
Unemployed,
House-wives,
Groups etc.
Govt. provides multiple types of facilities and subsidies to SHG’s (self-help group) or WSHG (women self-help group) and Income Generation Group. Govt. sanctions crores of rupees per year in head of multiple schemes. And Recovery rate is also too good in compare of other types of loan. Govt. Bank also run the Financial Inclusion Program for SHG and WSHG and their response is also too good because they charge minimum rate of interest according to the guidance of RBI (Reserve Bank of India).
Condition of Loan
SHG’s under the Financial-Inclusion Program
Minimum 6 months old SHG’s and after the grading of NBARD authority.
Not differentiate between SHG or WSHG.
Rate of Interest charge -8.75% p.a.
Duration-1 yrs to 5 yrs (12 month to 60 months)
Provide a loan -25,000 (minimum)
Purpose- Internal money lending or Activity based
(Give priority to activity based loan)

MFI’s (micro-finance institutions)
Gives the loan to WSHG (women self –help group) only.
MFI’s work process in India
•Maintain the name of women those who want money for their personal use.
•Employee of MFI’s forms a WSHG with 5 women member. For 3 years.
•MFI’s field staff visit to member house and confirm the address.
•In membership form also signed husband along with their wife. Such like a Guarantor.
•MFI’s issue a passbook to WSHG member with the photo of her husband.
Amount per member IN Hand Rate of Interest
I yrs 10,000 8,000 18 to 25% p.a
II yrs 12,000 10,000 -do-
III yrs 15,000 12,000 -do-
Recovery
Every year loan divided in 52 weeks but actually recover from WSHG in 50 weeks. Per thousand Rs.25 every week. Day of recovery fix in the time of formation of WSHG. Use hard and fast rules for recovery.


Purpose of loan
Mention in passbook such like for shop, patal business, candle business etc.
A poor man earn minimum Rs.60 per day,
In a week Rs.60 X 6=360/-
Paid to MFI’s weekly Rs.250/-
After paid loan amount=360-250=110 per week

Then one question arises how a poor man survive? If his wife taken a loan from any MFI. Why not he committed suicide with their family.

MFI’s are work as a money lender in society due to this reason they are targeted economically weak state like that Rajasthan, MP, Chhattisgarh, Orissa etc but not gives priority to Jharkhand, Bihar, UP and weaker section of society. Earn between Rs.50 crores to 500 crores.

According to the report of NCRB suicide rate is too high in above state.
Migration rate is also high in above state.

If MFI’s works properly then why poor man committed suicide or migrate from these state?