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Financial Engineering for Low-Income Households

Financial Engineering for Low-Income Households

First Edition
Edited by:
  • Bindu Ananth - President, IFMR Trust, Chennai, India
  • Amit Shah - Founding Member, Wealth Management Team, IFMR Rural Finance

April 2013 | 244 pages | SAGE India
Financial Engineering for Low-Income Households is an edited compilation of articles that focus on using financial engineering-a multidisciplinary field that uses technical methods from the fields of finance, mathematics and economics-to design financial services for low-income households. The book aims to provide an understanding of the various risk-reward trade-offs facing low-income households and how principles of financial engineering can be best applied to understand and manage the complete suite of financial and non-financial assets, including human capital, insurance, annuities and loans.

This compilation connects the fundamental concepts in finance and financial engineering with the relatively new field of financial services delivery to low-income households. Its applied nature will help the reader grasp the implications of theoretical principles in finance on practical product-design considerations. It has several illustrations, caselets, and exercises to facilitate learning and in order to develop a full understanding of the underlying concepts.

The book will be a valuable tool for students and practitioners interested in the design and delivery of financial services to low-income households.


Dr Nachiket Mor

Universalizing Complete Access to Finance: Key Conceptual Issues

Suyash Rai, Bindu Ananth and Nachiket Mor
Probability Distributions

Bindu Ananth and Amit Shah
Preference Theory

Bindu Ananth and Amit Shah
Asset Allocation, Portfolio Choice, and Capital Asset Pricing Model

Bindu Ananth and Amit Shah
Basics of Credit Risk

Vaibhav Anand
Human Capital

Bindu Ananth and Amit Shah
Life and Personal Accident Insurance

Bindu Ananth and Amit Shah
Health Risk and Financing

Swati Grewal
Longevity Risk

Shilpa Sathe
Livestock Risk and Insurance

Anupama Pant
Rainfall Risk and Insurance

Alok Shukla
Lending to Low-Income Households and Enterprises

Shilpa Sathe, Ratul Lahkar and Arun Kumar D
Commodity Price Risk and Financing

Shweta Aggarwal
Comprehensive Financial Plan for Jaya's Household Bindu Ananth, Amit Shah and Shilpa Sathe




The book explores how banks may help common man in selecting right financial products…this volume provides invaluable insights….Case studies and a cogent illustration make this book useful enough for bank officials to have on their bookshelves.

The Financial World

The authors have successfully assembled the ideas from a vast variety of sources into one cogent and accessible volume. Chapterization of book and sequencing of articles is very apt...this book will be invaluable for students, researchers and practitioners interested in the design and delivery of financial services to low income households.

Journal of Rural Development, Vol 32, July- September 2013

The book is a valuable compilation connected with financial engineering...comprehends different risk-reward equations encountered by household with offers a systematic approach towards building competencies in the frontline staff of all financial institutions...written in a simple way and can be referred to the CEO as well as fresh management graduate, the teller, the sales will be very useful for planners, economists and bankers.

Free Press Journal, 23 March 2014

[The book] highlights all the key issues, some of the leading practitioners from concerned stream have contributed to this book. This book will be a valuable tool from practitioners to students, who are interested in the design and delivery of financial services.

Sahara Time, 4 May 2013

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