Bangladesh’s Microcredit Regulatory Authority (MRA) has enacted a new regulation capping microfinance institution (MFI) loan rates at 27 percent per year as of July 2011.
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MICROCAPITAL BRIEF: Indian Government Considers Legislation Banning Microfinance Institutions (MFIs) from Making Multiple Loans to Borrowers
Legislators in India are reportedly considering banning microfinance institutions (MFIs) from multiple lending.
MICROCAPITAL BRIEF: Three Agents of SKS Microfinance Arrested in India After Borrower Complains of Harassment
Three agents of the Indian microfinance institution (MFI) SKS Microfinance have been arrested for allegedly harassing borrowers in the Indian state of Andhra Pradesh.
MICROCAPITAL BRIEF: Five Indian Microfinance Institutions (MFIs) Agree to Cut Interest Rates to 24%
The CEOs of Indian microfinance institutions (MFIs) SKS Microfinance, BASIX, Spandana, Share Microfin and Asmitha Microfin have agreed to reduce interest rates charged to borrowers to 24 percent on an annual basis. The announcement came after a meeting with financial services secretary, Mr R Gopalan.
MICROCAPITAL BRIEF: CEO of Indian Microfinance Institution BASIX Denies Charging Interest Rates of More than 24%
Sajeev Viswanathan, CEO of Indian group BASIX, which provides microfinance services through its microfinance institution (MFI) Bhartiya Samruddhi Finance Limited (BSFL), was recently interviewed by CNBC India, at which time he denied that BSFL charges interest rates as high as 60 percent on microloans.
MICROCAPITAL BRIEF: Series of Suicides Related to Microloan Repayment Rock India, Raises Questions of Whether Interest Rates Charged by Microfinance Institutions (MFIs) are Too High
A series of microfinance-related suicides in India have recently been reported, raising questions about whether the interest rates charged by microfinance institutions (MFIs) are usurious.
MICROCAPITAL BRIEF: Indian Microfinance Institution Sanchetna Financial Services Lowers Interest Rate on Samridhi Loan Product from 15% to 12.5% with a 45-Week Term
Sanchetna Financial Services, a Lucknow-based microfinance institution, recently announced that it will lower interest rates on its flagship loan product, Samridhi, from a flat interest rate of 15 percent over 46 weeks to 12.5 percent over 45 weeks.
MICROCAPITAL BRIEF: Lokesh Kumar Singh of Sanchetna Financial Services on Corporate Governance in the Indian Microfinance Industry
Lokesh Kumar Singh, Managing Partner at Indian microfinance institution (MFI) Sanchetna Financial Services, recently wrote an article on corporate governance in the Indian microfinance industry that appeared on the India Microfinance Business News website.
MICROCAPITAL BRIEF: Indian Microfinance Institution Trident Planning to Raise $16m in Equity Financing
Trident Microfin Private Limited (formerly known as Annapurna Financial Services Private Limited), an Indian microfinance institution, recently announced it plans to raise INR 750 million (USD 16 million) in equity financing from high-net-worth individuals and two existing investors, Caspian Advisors’ Bellwether Microfinance Fund and the India Financial Inclusion Fund, both of which are India-focused equity investment funds.
MICROCAPITAL BRIEF: Indian Financial Company, SE Investments Limited, Plans to Expand Microfinance Activities into Uttarakhand and Rajasthan States, Add 100,000 New Clients
SE Investments Limited, a Delhi-based public limited company with approximately 200,000 active borrowers, recently announced that it plans to expand microfinance activities into Uttarakhand and Rajasthan states and add 100,000 new clients.
MICROCAPITAL BRIEF: State Bank of India and Oxigen Private Limited Install First 80 Microfinance Kiosks in Mumbai and Delhi
The State Bank of India (SBI), a state-owned financial services company in India, and Oxigen, an Indian bill-payment and prepaid-recharge company, recently announced details of their joint program to install banking kiosks in local grocery shops.
MICROCAPITAL BRIEF: Indian Microfinance Institutions Shifting to Monthly Loan Repayment Schedule
Indian microfinance institutions (MFIs) are offering loan products with monthly repayment plans as opposed to weekly payment terms, and according to a recent article more Indian microfinance institutions are considering offering products with monthly payment terms [1].
MICROCAPITAL BRIEF: Dr C Rangarajan, Chairman of the Indian Prime Minister’s Economic Advisory Council Asks Microfinance Institutions (MFIs) to Consider Borrowers’ “Repayment Capacity” To Avoid Default
Dr C Rangarajan, Chairman of the Indian Prime Minister’s Economic Advisory Council, recently asked India’s microfinance institutions (MFIs) to consider borrowers’ repayment capacity when setting interest rates on loans.
MICROCAPITAL BRIEF: Saija Finance Private Limited Addresses Shortage of Microfinance in Bihar, India
Since 2008 Saija Finance Private Limited, a nonbanking finance company with total assets of INR 11 million (equivalent to USD 240,000), has been providing microfinance services in the Indian state of Bihar, which according to a report by the National Bank for Agriculture and Rural Development (NABARD), has a credit-demand supply gap of 96 percent.
MICROCAPITAL BRIEF: Indian Microfinance Institution (MFI) Sanchetna Financial Services Receives $320,000 from Oikocredit’s Maanaveeya Holdings and Investments, Ananya Finance for Inclusive Growth and Trust MicroFin Network (TMN)
In its July 2010 newsletter, the Indian microfinance institution (MFI) Sanchetna Financial Services reported that it will be receiving a loan of INR 10 million (USD 211,000) from Maanaveeya Holdings and Investments, the Indian subsidiary of the Dutch cooperative investment fund Oikocredit. In addition, Sanchetna will receive INR 3 million (USD 64,000) from the microfinance investment vehicle (MIV), Ananya Finance for Inclusive Growth, and INR 2 million (USD 43,000) from the nonprofit trust, Trust MicroFin Network (TMN).
MICROCAPITAL BRIEF: International Finance Corporation to Acquire 20% Stake in India-Based Microfinance Institution Swadhaar FinServe (SPFL)
The International Finance Corporation (IFC), a member of the World Bank Group, recently announced plans to acquire a 20 percent stake in Swadhaar FinServe (SPFL), a non banking financial company that caters to India’s urban poor, for USD 2.25 million.
MICROCAPITAL BRIEF: Asian Development Bank (ADB) Provides $3m Grant to Small Industries Development Bank of India for Women Who Have Outgrown Microfinance, Are Caught in the “Missing Middle”
The Asian Development Bank (ADB), a regional development bank headquartered in Manila, the Philippines, which in 2007 approved USD 10.1 billion in loans [1], is providing a USD 3 million grant to the Small Industries Development Bank of India (SIDBI) to offer services to female entrepreneurs in India. The grant will target women who have “outgrown traditional microfinance support, but who are unable to access more conventional bank financing – the so called ‘missing middle’ group of the small enterprise sector” [3].
MICROCAPITAL BRIEF: International Finance Corporation (IFC), the Investment Arm of the World Bank, Provides USD 300,000 Investment to Utkarsh Micro Finance, a Microfinance Start-Up Based in Varanasi, India
The International Finance Corporation (IFC), the investment arm of the World Bank, has provided a USD 300,000 investment to Utkarsh Micro Finance Private Limited, a microfinance start-up providing loans in Northern India.