Tag: Microcredit

The microfinance sector provides capital access to the society’s underserved segment. In India, this sector is growing significantly. However, the existing underwriting model follows the conventional method of credit score, which rules out a huge segment with zero or thin-file credit. Alternate data is required to meet this segment’s credit needs. Listen to our podcast to understand how Microfinance.AI uses this unserved segment’s digital footprint and provides them with capital access.

As Bangladesh celebrates 50 years of independence, we look back at one of its greatest gifts to the world—microfinance. This blog highlights the role of Bangladesh’s four pioneering institutions—Grameen Bank, BRAC, ASA, and BURO Bangladesh—in the origin of microfinance and its local popularization, global adaptation, business model optimization, and product innovation.

Twenty years ago, MicroSave was set up to try to support the development of savings and other non-credit services for low-income households.

The use of credit is an essential part of how low-income households manage to smooth their consumption in the face of “double-whammy” combinations of income and expenditure shocks. The big push for microcredit in the past decade has led to an abundance of microfinance providers and other providers that offer standardized products.

Microcredit is not microfinance; Product v. market-led business; Branchless banking; The Indian market; The Andhra Pradesh crisis and the future.

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