Last week, India’s leading english news channel NDTV broadcast a four minute story showcasing a suicide by a microfinance client. The program begins with Vikram Akula denying that SKS Microfinance has played any role in formenting these suicides and then the reporter narrates the circumstances under which MFI clients committed suicide in the state of Andhra Pradesh in India.
The sheen is wearing off fast for the country’s microfinance firms. The story, which started off well with the purpose to achieve poverty alleviation, has now gone horribly wrong. The key to the failure of micro credit stories seems to be the unrestrained selling of cheap credit to poor people, often without proper checks and balances.
Duration : 4 Min
The Microfinance Story in India – How it went wrong ?