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  • For Micro-Finance survival,

    For Micro-Finance survival, they need to muzzle their Spin Doctors and listen more to their High Priest A string of suicides in Andhra Pradesh that put micro-finance under the spotlight, triggered a backlash because of which, MFIs found themselves reduced to fighting for their basic survival. No surprise here to find a variety of spin-doctors functioning as their apologists, fending off and neutralising any criticism that the industry faces currently, almost oblivion to the fact their support is to a slow sinking Titanic. Two of the most significant spins in this debate are those related to suicides and interest rate. In this post, we bust these spins. "I believe in Schumpeterian creative destruction. Its time has come. The present MFI model has to go.... It wasn't just about giving loans. It was also about creating livelihood mechanisms, which would build capacity among the poor to repay their loans easily, and leave them better off than before" This is Economic Times quoting Vijay Mahajan, considered the high priest of Indian microfinance suggesting that either MFIs change their business models or go bust.

    Posted by: Anonymous | 7 years ago | Reply
  • The only problem with MFIs is

    The only problem with MFIs is that there are many MFIs working at any given place thereby each providing easy loan to people who believe that running a small enterprise/shop is easy. Its only multiple lending that has made the situation so horrible. I believe a simple regulation on the part of government would be enough to make MFIs sensible and stick to agenda of providing credit to poor people at interest rates at around 20% even if for MFIs it means shelving scaling up opportunities and making investors a little less happy.

    Posted by: Anonymous | 7 years ago | Reply
  • The recession is supposed to

    The recession is supposed to be over, but customer lending - or loans lent to individuals - is still low. Most of us have depend on lenders when it comes to financial assistance. Some find it easy to get short term financial aid, but others are unfortunate to take out. Customer lending - loans lent to individuals - has been slow to recuperate from a two-year lull. Loans such as mortgages, auto loans, home equity lines of credit and personal loans aren’t extremely hard to get but are harder to get approved for. Since the banking and finance industry had to run for cover after going on several years of a glut, loan providers have become more skittish.

    Posted by: Anonymous | 7 years ago | Reply
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