Microfinance Interviews

Q&A with Mr N Srinivasan, Author Microfinance State of the Sector Report 2010

What were the major trends that you saw in this year’s State of the Sector report?

One big trend that we saw was that the SHG movement is slowing down significantly and MFIs have overtaken them on disbursements.

Are some of these issues of overlending etc most acute in Andhra Pradesh? Are we seeing a MFI presence getting more evenly distributed now?

Andhra Pradesh is more indebted now. Each household has an average of 9.3 loans from MFIs or SHGs. We have also seen some issues in Orissa, Maharashtra and Chattisgarh. This could be because of bad not excessive lending. Tamil Nadu, Karnataka and West Bengal all have more than two loans per household. And if we look at it districtwise there are some districts with an average of seven to eight loans per household. MFIs will have to look at these districts and take a call on whether they intend to stay there or not.

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