by Melissa Duscha -

PAPER WRAP-UP: India Microfinance Review 2007

 This review of the Indian microfinance sector is based on an analysis of M-CRIL’s sample of 58 rated microfinance institutions and the MIX’s 37 reporting institutions in 2006.  The publication was released in 2007 by Microfinance Information Exchange (MIX) and Micro-Credit Ratings International Limited (M-CRIL) as a 74-page document and is currently available at: http://www.microfinancegateway.org/content/article/detail/45957/

by Anthony Busch -

WHO’S WHO IN MICROFINANCE: Aloysius P. Fernandez

Aloysius P. Fernandez is the Executive Director, as well as board member, of Bangalore-based Mysore Resettlement and Development Agency (MYRADA), a non-governmental organization (NGO) in India which provides training programs for rural development in the Indian states of Karnataka, Andhrapradesh, and Tamil Nadu as well as staff support to 6 other states and promotion of the Self-help Affinity Strategy in Cambodia, Bangladesh, and Myanmar. MYRADA also publishes on various topics such as watershed development—projects which pursue better management of natural water resources—and NGO-government collaboration.

by Mary Fu -

WHO’S WHO IN MICROFINANCE: Dr. Akhtar Hameed Khan

Dr. Akhtar Hameed Khan, a prominent figure who helped lay the basic foundations of the microcredit movement, is mostly known for his work on the Comilla Model of rural development in the 1960s and the Orangi Pilot Project in the 1980s. The Comilla Model was originally developed at the Bangladesh (formerly Pakistan) Academy of Rural Development, and focused on the integration of public and private resources in creating a central institutional base and developing around it various development programs. The Orangi Pilot Project was initiated as a grassroots development project that emphasized self-help as the primary means of developing the “katchi abadis” (informal sector).

by Mary Fu -

MICROCAPITAL STORY: Indian Grameen Services (IGS) to Expand Microfinance Services into Poorest Regions of India

Indian Grameen Services (IGS), the research and development arm of BASIX, a financial and technical services group based in Hyderabad, India plans to expand its business operations into Bihar, Jharkhand, Chattisgard, Uttaranchal, Uttar Pradesh and parts of Rajasthan, all of which rank among the poorest parts of India. Please note that neither IGS nor BASIX is affiliated with Grameen Bank.

by Amy Rennison -

MICROCAPITAL STORY: 3 Million More Rural People to Benefit from Smartcard Technology That Enables Microfinance in India

The Government of Andhra Pradesh in India has proposed to roll out Smartcard technology to a further 3 million rural people in 8 districts in the state, giving them access to a bank account for the first time. The Smartcard technology provides access to banking facilities for low-income groups in areas without existing financial services infrastructure.

by Elizabeth Nelson -

MICROCAPITAL STORY: Indian Financial Inclusion Firm, A.Little.World, Offers Mobile Microfinance Banking and Draws Big Investors: Enam Financial and Legatum Capital

Enam Financial, a leading Indian financial service provider, has picked up a ten percent stake in A.Little.World, a company which integrates a microfinance model with a new multi-bank payment system in order to bring mainstream banking capabilities to the large population of un-banked rural Indians. The amount of investment was not disclosed.

by the MicroCapital Team -

MICROCAPITAL STORY: JM Financial India Fund in Conjunction with Old Lane Partners Invests USD 10 million into Spandana Microfinance Institution

JM Financial India Fund, a private equity fund sponsored by JM Financial, an Indian financial services firm, and Old Lane Partners, a New York based hedge fund, will invest Rs40 crore (USD 10 million) in Spandana, a microfinance company based in Hyderabad, Andhra Pradesh.

According to a JM Financial release, the investment would be used to expand Spandana’s branch network and pursue growth opportunities, both organically and through acquisitions.
Continue reading “MICROCAPITAL STORY: JM Financial India Fund in Conjunction with Old Lane Partners Invests USD 10 million into Spandana Microfinance Institution”

by the MicroCapital Team -

MICROCAPITAL STORY: Indian Microfinance Firm Sandana Partners up with Global Money Transfer Company Western Union

Western Union, a global leader in money transfer services, has confirmed a partnership with Sandana, a microfinance institution housed in the city of Hyderabad, the capital of Andhra Pradesh. Money transfer services will be available via Western union from all 280 of Sandana’s branches, which cover both the rural and urban populations of the states of Andhra Pradesh and Karnataka.

  Continue reading “MICROCAPITAL STORY: Indian Microfinance Firm Sandana Partners up with Global Money Transfer Company Western Union” 

by the MicroCapital Team -

Indian Bank åö ICICI Reaches Arrangement with Provincial Government on Micro-Loan Interest Rates

ICICI bank has reached an agreement with the provincial government of Andhra Pradesh, India to cap interest rates at 15% and charge a diminishing interest rate on the loans disbursed through microfinance institutions (MFIs) in the Krishna district of the state. The revised interest rates will be charged retrospectively from April 2006. As per the terms of the agreement, the bank will also open an MFI desk and 10 rural centers in Krishna district to offer loans directly to customers. The bank will also explore the possibility of opening additional branches in other districts. The state government, in turn, has lifted the ban on MFIs loan collections at the agreed upon interest rates.

Earlier this year, the government of Andhra Pradesh, an Indian state where microcredit has witnessed rapid growth, had accused MFIs of usurious lending practices and unethical collection methods. Multiple suicides over MFI harassment were reported from five districts were reported with Krishna district being the most affected region. The government specifically charged the following MFIs åö Spandana, Asmita, Umduma Poddu Pedatha and Share Microfin of extortionate practices and subsequently, the Krishna district administration enforced temporary closure of 50 branches of these MFIs, seizure and destruction of loan records and encouraged non-payment of loans.

Continue reading “Indian Bank åö ICICI Reaches Arrangement with Provincial Government on Micro-Loan Interest Rates”