Related Resources

One Step Beyond: Challenges and Opportunities in Promoting Quality Financial...
The last decade of microfinance practice, particularly in East Africa, has neglected rural finance. Support to the sector has concentrated on turning credit programmes into sustainable microfinance institutions (MFIs). The result of this has been a focus on small-scale businesses and...
423.19 KB

The Andhra Pradesh Crisis: What Should MFIs Do?

Author: Graham A.N. Wright, Manoj Sharma
Published: December 13, 2010


Clearly the microfinance, or better said "microcredit", industry in India is undergoing a major shake-up. This note examines the nature of the shake-up and likely consequences including interest rate caps, sources of capital, equity valuations and the worst case scenario. It concludes that long-term the current turmoil in Indian microfinance may result in improved financial services for the poor - so long as they are easily accessible and not in high cost to operate areas. In the short run the options for poor people will shrink significantly - much to their detriment.

Tags: MicroSave , MicroSave india , Microfinance , AP MFI Crisis , Industry analysis , Business model , Policy , Reserve Bank of India , SIDBI , India , South Asia , IFN56 , IFN 56

0 Comment
0 Likes Like
89.56 KB

Leave a Comment