Microfinance News Links Digest – 1/06/2010

Fullerton India Credit targeting 1 million microfinance clients in 2 yrs

Having gained a firm foothold in the urban micro credit segment, Fullerton India Credit Company, a subsidiary of Fullerton Financial Holdings, has forayed into the country’s microfinance segment. India is the first market where Fullerton Financial has forayed into microfinance as it believes there is a large under-served segment here. More

5 lakh farmers to get collective credit under NABARD scheme
NABARD will bring five lakh farmers under its Joint Liability Group scheme on the lines of Self Help Groups, to enable small and marginal farmers across the country to collectively get financial credit for agricultural activities, a top NABARD executive said Thrusday.

NABARD has already enrolled 30,000 farmers under the JLG and helped them get loans from banks to buy various agricultural inputs, NABARD Chairman Umesh Chandra Sarangi told reporters here. More

RBI makes it easier for Foreign NBFC’s to operate in India

The government will consider changes in rules to allow 100% foreign owned and well capitalised non-banking finance companies (NBFCs) to set up subsidiaries, removing the curbs introduced by the foreign direct investment guidelines issued last year. More

Asomi Microfinance – A Profile

asomi microfinance logosSet up nine years ago, Asomi has grown manifold and its impact is visible on ground today.Over 26,000 families of Assam get direct benefits of Asomi’s small ticket loans resulting into a silent revolution among the poverty-stricken people. “For me, the biggest success of Asomi is to engineer changes in economic status of poor families,” says Subhra Jyoti Bharali the founder of Asomi Microfinance who now plans to reach 200,000 families by 2012 through micro-finance. More

Andhra Pradesh government to file criminal cases against MFI’s

The Andhra Pradesh government will file criminal cases against microfinance institutions (MFIs) that resort to coercion and use ‘inhuman’ means to recover loans extended to the poor. It will also invoke the provisions of the AP Money Lending

The state will also seek clarity on the interest spread that the MFIs can have from the Reserve Bank of India.“ The cost of funds for most MFIs will be 9-10 per cent but they are charging ridiculously high interest rates, sometimes up to 40 per cent a year,” R Subramanyam, principal secretary, panchayat raj and rural development department, told Business Standard.More

Chaitanya marks SHG federation’s first anniversary

Chaitanya, a developmental organisation that played a key role in the Self Help Group (SHG) revolution for women in Maharashtra, in partnership with Suzlon Foundation recently celebrated the first year anniversary of the SHG Federation.More

Frugal innovations for financial inclusion

For inclusive growth in India, private enterprises should innovate to develop customised and cost-effective products and services for under-penetrated markets. The hallmark of such innovations is our completely homegrown Tata Nano, which Bruce Nussbaum suggested contains two salient forms of innovations, ‘frugal engineering’ and ‘inclusive innovation’ and christened it as frugal innovation or Nanovation. More

The year that Was: Vikram Akula’s Moment of Reckoning
SKS, like the sector it represents, is at a crossroads today. The company is working to become the world’s largest microfinance institution (MFI) next year by overtaking Muhammad Yunus’ Grameen Bank. SKS is also on the verge of becoming the first-ever MFI in India to go public. Not only is the management divided on how to grow, but is also facing charges of losing sight of its customers in favour of profitability and investor targets. Yunus, widely regarded as the father of microfinance, shivers at the thought of mixing private profits and microlending. “That’s what loan sharks have been doing over centuries.” – More

Interview with Pradeep Kalra,CIO of SKS Microfinance

SKS India was using an on-site email security solution and basic web filtering solution to enforce Internet Usage and Access control policies. In spite of a solution in place, problems continued. Internet bandwidth was getting choked up as 85 per cent of email traffic was SPAM and SKS had to increase the internet bandwidth on a constant basis to ensure high availability.

Then, Emails with malicious URL embedded were not getting blocked by the solution thereby causing a lot of security and network incidents. Further, SKS had plans to incorporate multiple outbound email gateways while user dis-satisfaction as the SPAM capture rate continued to soar and to add to that, users were constantly bypassing internet usage policies enforced.

The web filtering solution deployed was very basic and this brought several employee computing risks like security, legal liability, productivity loss, Bandwidth loss etc. Caught amidst these multiple tug-of-war areas, Kalra decided to take the challenge head-on. Here’s more on how the whole new impetus and investment panned out ? – Read More

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