Microfinance borrowers in Bolpur, a town in the Indian state of West Bengal, reportedly have stopped paying back their loans to microfinance institutions (MFIs) at the urging of local politicians in the hopes that their debts will be waived.
MFIs in the region that rely on loans from banks have been forced to cut loan disbursements by a reported 40 percent to 50 percent as banks attempt to limit their exposure to the recently troubled microfinance sector in India [1,2].
By John Howard-Smith, Research Associate
[1] Microfinance Focus: “Microfinance repayment crisis spurs in Birbhum district, West Bengal”, http://www.microfinancefocus.com/content/microfinance-repayment-crisis-spurs-birbhum-district-west-bengal
[2] MicroCapital.org story, December 2, 2010: “MICROCAPITAL BRIEF: Microfinance Institutions (MFIs) in India’s West Bengal Face Cash Shortage as Pain Spreads Outside Andhra Pradesh”, https://www.microcapital.org/microcapital-brief-microfinance-institutions-mfis-in-indias-west-bengal-face-cash-shortage-as-pain-spreads-outside-andhra-pradesh/
MICROCAPITAL BRIEF: India’s Microfinance Industry on Brink of “Collapse” Due to Credit Freeze in State of Andhra Pradesh https://www.microcapital.org/microcapital-brief-indias-microfinance-indus…
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