Microfinance News Digest

Banks restructure loans for MFI’s, reduce interest rate to 12% – ND4

Banks ready with MFI loan rejig plan
Banks have prepared a blueprint for restructuring loans to microfinance institutions (MFIs). According to the proposal, institutions like SKS Microfinance, Spandana Spoorthy, Asmita, Basixs and Share Micro Finance would be given a maximum of 10 years to repay the loans at an interest rate of 12%. TOI

Bihar eyes legislation for MFIs
Bihar government was mulling a proposal to enact a legislation on the pattern of Andhra Pradesh to regulate and have effective control over Micro Finance Companies in the state. ET

Banks ask MFIs to replace weak collateral with assets
With a deterioration in the loan portfolio quality of some micro finance institutions, banks have asked MFIs to replace weak collateral with better-quality assets to hedge the risks. This issue is especially pertinent to loan portfolios in Andhra Pradesh. BS

bank loan mfi

Andhra Pradesh gives more teeth to MFI Act
Even as microfinance institutions are seeking withdrawal of the Andhra Pradesh Microfinance (Money-lending) Regulation Act, the State Government has further broadened its scope. HBL

Interview with Roshaneh Zafar, founder Kashf Foundation Pakistan
Roshaneh Zafar started a microfinance organization called the Kashf Foundation in Pakistan to help women out of poverty. With the mentoring help and a US$10,000 loan from Dr. Mohammed Yunus, founder of the Grameen Foundation in Bangladesh. Wharton

How India’s banks killed the future of Commerce
By RBI mandate, as of February 1 2011, two factor authentication is required for all mobile based transactions. In compliance, we switched our mobile web payments to two factor authentication on February 1. Here’s what happened to our daily mobile transaction volumes that day. Cleartrip

Credit flow to SHGs set to touch Rs 11,000 Cr
Though lending by microfinance institutions in Andhra Pradesh has suffered a setback due to the recent controversies, credit flow into rural areas through the self-help group (SHG)-bank linkage is quite intact and set to grow further in 2011-12. ET

NABARD to get Rs 3,000 crore capital infusion
In a bid to expand credit flows to the farm sector, the government has proposed to infuse Rs 3,000 crore in National Bank for Agriculture and Rural Development (NABARD). ET

Microfinance Leaders Strive to Walk the Walk
Vijay Mahajan, founder of the microfinance institution BASIX, and widely regarded as the dean of Indian microfinance, is walking the hot and dusty roads of rural India in his kurta pajama and sandals, and as he’s walking he’s thinking about the microfinance industry’s tough year. HuffPost

Nobel laureate economist Yunus may be victim of petty jealousy
The popular pioneer who was ousted from Grameen Bank, a microfinance institution, may be too successful for others’ liking in Bangladesh, where hingsha, or vindictiveness, is a hallmark of national politics. LATimes

MFIs get fund crunch jitters after Yunus exit
Ouster of Bangladesh-based Grameen Bank founder Muhammad Yunus has come as yet another jolt to microfinance companies in India, which are reeling under a severe fund crunch and intense scrutiny of their operations. FC

Is microfinance a neoliberal fairytale?
Critics of microcredit make some convincing arguments that need urgent rebuttal from the organisations that have ploughed huge sums into it. Guardian

This is the fourth installment of weekly News Digest (ND4).The News Digest comprises of news summaries, press releases and important statements related to microfinance, banking, financial services and financial inclusion in India.

Read previous News Digests here

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