Microfinance News Digest

Has Microfinance Lost its Soul ?

microfinance world news digest

How Microfinance Lost its Soul

Microfinance has lost its soul. Six fundamental shifts in the practice of microfinance have left it operating more like a for-profit bank and less like an innovative pro-poor movement. Read more on Huffington Post

Microfinance pioneer Mohammed Yunus criticises Indian Microfinance Lenders

Bangladeshi microfinance pioneer Muhammad Yunus on Sunday attacked companies for “misusing and abusing” his original concept of helping poor people via small loans, after a backlash against profit-making lenders.

Yunus admitted the reputation of micro-credit had been tarnished due to Indian commercial companies that charge high interest rates and use allegedly heavy-handed tactics to collect repayments. Read more on AFP

A Tale of Microfinance in Two Cities

Microfinance in India is undergoing a crisis caused by a toxic mix of mushrooming growth and political volatility. As they ponder their next steps, participants in the Indian microfinance sector would do well to examine another crisis that touched microfinance, in Bolivia in the years 1999 and 2000. Hyderabad, meet La Paz. Read more on Huffington Post

Microfinance in India – From a blessing to a curse

Microfinance is meant to lift people out of poverty, but the women of Peddammagadda say it’s become a curse. This shanty town on the outskirts of Warangal, a city in the south Indian state of Andhra Pradesh, has been overrun by loan agents from India’s highly competitive microfinance industry. Read more on The Age

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