Indian banks that have disbursed loans to microfinance institutions (MFIs) have reportedly prepared a blueprint for restructuring these loans. Under the proposal, Indian microfinance institutions (MFIs) would be given a maximum of ten years to repay loans to financial institutions at an interest rate of 12 percent. The loans that would be restructured under the proposal are estimated to total INR 130 billion (USD 2.8 billion) [1].
Search Results for: Microfinance Institutions Bill India
MICROCAPITAL BRIEF: Peruvian Microfinance Institution (MFI) Prisma is First Fully Certified User of Grameen Foundation’s Progress out of Poverty Index (PPI)
Grameen Foundation, a US-based nonprofit, has announced that “Asociacion Benefica Prisma”, a Peru-based microfinance institution (MFI), has become the first fully certified user of the Progress out of Poverty Index (PPI) [1].
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases Benchmarking Reports on West Africa and Arab Region
Microfinance Information Exchange (MIX), a nonprofit, US-based data provider, recently released its “2010 WAEMU – Microfinance Analysis & Benchmarking Report “ and “2010 Arab Microfinance Analysis and Benchmarking Report”.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Analyzes Profitability of Microfinance Institutions (MFIs)
Data collected by Microfinance Information Exchange (MIX), the US-based nonprofit data provider, contradicts the idea that the commercialization of microfinance is increasing the vulnerability of low-income households [1] [2].
MICROCAPITAL BRIEF: ACCION International Issues Credit Guarantees Totaling $1.5m to Indian Microfinance Institutions (MFIs) Swadhaar FinServe, Saija
ACCION International (ACCION), a private, US-based nonprofit organization with a global network of microfinance institutions (MFIs), recently issued two standby letters of credit (SBLC) totaling USD 1.5 million for two of its Indian partner microfinance institutions (MFIs) to secure loan facilities.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Updates Review of Yunus’s Classification of Interest Rates, Argues Against Interest Rate Caps
The US-based nonprofit data provider Microfinance Information Exchange (MIX) recently published an updated review of the methodology for categorizing microcredit interest rates proposed by Nobel laureate Dr Muhammad Yunus in his book “Creating a World Without Poverty”. The review, which uses 2009 data from approximately 1,020 microfinance institutions (MFIs) covering approximately 88 million borrowers, updates the findings of the previous review presented by MIX that uses 2008 data.
MICROCAPITAL BRIEF: Federal Microfinance Bill May Replace Existing State Microfinance Legislation in India
The Ministry of Finance in India recently unveiled its plan to pass a new microfinance bill to regulate the microfinance sector. The ordinance passed by the government of the Indian state of Andhra Pradesh in October 2010, in response to a series of farmer suicides, severely curtailed lending activity in the region. The bill, which is reportedly being drafted along the lines of the recommendations made by the Reserve Bank of India’s Malegam Committee which was formed in the wake of the unrest in Andhra Pradesh, is likely to render state legislation on microfinance null and void.
MICROCAPITAL BRIEF: For-profit Microfinance Institution (MFI) BASIX Group Negotiating $166m Loan from Consortium of Banks Led by Small Industries Development Bank of India (SIDBI)
BASIX Group, a for-profit microfinance institution (MFI) based in India, is currently involved in negotiations with a consortium of banks led by Small Industries Development Bank of India (SIDBI), an Indian government-owned bank providing credit to medium and large-scale MFIs, to receive a INR 7.5 billion (USD 166 million) loan largely intended to restructure the existing debt of BASIX.
MICROCAPITAL BRIEF: Centre for Micro Finance of Institute for Financial and Management Research (IFMR) and College for Agricultural Banking of Reserve Bank of India (RBI) Publish Joint Study on Remittance Channels
The Centre for Micro Finance at the Institute for Financial and Management Research (IFMR), a think-tank established in India, and the Reserve Bank of India’s College for Agricultural Banking, a training college for the central bank of India, recently published a report on the trends in domestic money transfers by Indian migrant workers.
MICROCAPITAL EVENT: Re-engineering Microfinance: Need for New Products & Policies, New Delhi, India, March 15-16, 2011
Event Name: Re-engineering Microfinance: Need for New Products & Policies
Event Date: March 15 & March 16, 2011
Event Location: Hotel Ashok, New Delhi, India
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Eases Access to Social Performance Data of Microfinance Institutions (MFIs), Announces 11 Social Performance Indicators in Conjunction With Social Performance Task Force (SPTF)
The Microfinance Information Exchange (MIX), the US-based provider of data relating to microfinance, now offers social performance data on microfinance institutions (MFIs) directly from each MFI profile on mixmarket.org.
MICROCAPITAL BRIEF: Vikram Akula of SKS Microfinance Views Recommendations of Reserve Bank of India (RBI) Malegam Committee as Boost to Microfinance
Vikram Akula, chairman of SKS Microfinance, a for-profit microfinance institution (MFI) in India, has stated that the recommendations released by the “Malegam Committee” of the Reserve Bank of India (RBI) in response to unrest in microfinance in the Indian state of Andhra Pradesh, would give a boost to the microfinance sector by further encouraging bank lending to MFIs. Mr Akula also stated that the proposed microloan interest rate cap of 24 percent would not impact SKS Microfinance as its lending rate falls below the cap, but that it would impact smaller institutions that are yet to achieve efficiencies of scale. He viewed this recommendation as a measure to encourage consolidation within the sector.
MICROCAPITAL BRIEF: Indian Microfinance Leaders Comment on $250m Asian Development Bank (ADB) Guarantee Initiative for Asia and the Pacific
Representatives of the Indian microfinance industry recently commented on the likely impact of the USD 250 million Asian Development Bank (ADB) initiative that will offer guarantee facilities to banks that loan to microlenders in the Asia-Pacific region, as was covered by MicroCapital.org on December 22, 2010 [2].
MICROCAPITAL BRIEF: Freedom from Hunger Microfinance and Health Protection (MAHP) Initiative Reaches Peru, Vietnam, Cambodia; Expands in India
US-based nonprofit Freedom from Hunger recently announced that, since the completion of its Microfinance and Health Protection (MAHP) initiative in December 2009, it has replicated the program in Peru, Vietnam, Cambodia and additional communities in India.
MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Loans $11m to Indian Microfinance Institutions via UTI Fund
responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it invested approximately USD 11 million in an unspecified Indian money market fund via the UTI Wealth Creator 4 fund, which is organized under UTI International Limited, a subsidiary of UTI Asset Management Company of India.
MICROCAPITAL BRIEF: SKS Microfinance of India Increases Loan Loss Provision, Reports 38% Fall in Quarterly Net Profit
SKS Microfinance, a for-profit, publicly traded microfinance institution (MFI) based in India, recently reported total income of INR 3.85 billion (USD 83.8 million) and a 38 percent drop in net profit to INR 341 million (USD 7.4 million) for the period October-December 2010. A 30-percent fall in the share price of SKS has also been recorded since October 2010 [1].
MICROCAPITAL BRIEF: Government of India’s Andhra Pradesh Considers Requiring Microfinance Institutions (MFIs) to Compensate Families of Suicide Victims
The government of the Indian state of Andhra Pradesh (AP) is considering a bill that would make it compulsory for microfinance institutions (MFIs) to compensate the families of borrowers who commit suicide as a result of heavy debt burdens.
MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases “Microfinance Market Report for Latin America and Caribbean 2010”
Microfinance Information Exchange (MIX), a nonprofit organization based in Washington, DC, that provides business, financial and operational information on the microfinance sector, has recently released the “Microfinance Market Report for Latin America and Caribbean 2010”.