by Ariana Malushi -

MICROCAPITAL BRIEF: Private Equity Investors Wary As Return on Equity for Indian Microfinance Institutions Drops from Over 45% to Under 20%

The steep decline in microloan repayments that began in 2010 in the Indian state of Andhra Pradesh (AP) is continuing to keep private investors away from microfinance institutions (MFIs).

by Nisha Koul -

MICROCAPITAL BRIEF: “Nokia Money” Electronic Wallet Service Launched in India in Effort to Promote Financial Inclusion

Nokia Corporation, a Finnish telecommunications company, has launched Nokia Money, an electronic-wallet service, in an effort to promote financial inclusion of previously “underbanked” people across India [1].

by Nisha Koul -

MICROCAPITAL BRIEF: Indian NGO Gramalaya Creates Microfinance Institution Gramalaya Microfin Foundation

Gramalaya, an Indian nongovernmental organization (NGO), has launched a new microfinance institution (MFI), Gramalaya Microfin Foundation (GMF) that aims to “eradicate poverty through livelihood promotion activities through increased access to financial services” [1].

by Nisha Koul -

MICROCAPITAL BRIEF: Indian Microfinance Institutions Shift from Lending Mostly to Women Towards Relatively Gender-Balanced Portfolio, Reports Elena Bridgers in Stanford Social Innovation Review

Elena Bridgers, a social researcher based in France, recently authored an article on the website of the US-based Stanford Social Innovation Review exploring the shift of microfinance institutions (MFIs) in India from a primarily “female client base” to a more “gender-balanced portfolio” [1].

by Ariana Malushi -

MICROCAPITAL BRIEF: United Kingdom Loans $100m to Launch Private Sector Development Programme in Partnership with Small Industries Bank of India

The UK has launched a private sector development programme in India with a loan of GBP 65 million (USD 100 million) which will be implemented between 2012 and 2019 together with the Small Industries Development Bank of India (SIDBI).

by Ariana Malushi -

MICROCAPITAL BRIEF: Stymied by Local Regulation, Microfinance Institutions (MFIs) based in India’s Andhra Pradesh Expand Into Northern States

Following the enactment of the Regulation of Microlending Act in October 2010 by government of the Indian state of Andhra Pradesh (AP), which requires government approval of each microloan, microfinance institutions (MFIs) based in AP have began expanding into northern India.

by Kristha Abores -

MICROCAPITAL BRIEF: International Finance Corporation (IFC), India’s Microfinance Institutions Network (MFIN) Promote Reporting to Credit Information Bureau

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and the Microfinance Institutions Network (MFIN), a self-regulatory organization of Indian microfinance institutions, are working together to encourage microfinance institutions to start reporting to the country’s Credit Information Bureau, which is intended to promote responsible lending.

by Ariana Malushi -

MICROCAPITAL BRIEF: Looking to Cut Out Middleman, Samrudhi Microfin Society (SMS) Launches Online Lending Portal, WeCareIndia.Org

Samrudhi Microfin Society, an Indian nonprofit microfinance institution (MFI), has launched WeCareIndia.Org, an online lending portal that allows investors to lend as little as INR 100 (USD 2) to Samrudhi borrowers.

by Kristha Abores -

MICROCAPITAL BRIEF: HDFC Bank, Vodafone Launch Mobile Banking Service in India

Indian financial institution HDFC Bank and telecom service provider Vodafone India, a subsidiary of the UK-based Vodafone Group, have launched the “HDFC Bank MobileBank Account with Vodafone m-paisa”, a service allowing customers to perform banking transactions using mobile phones.

by Kristha Abores -

MICROCAPITAL BRIEF: Government of Andhra Pradesh, India, Introduces Interest-Free Loans for Women in Self-Help Groups (SHGs)

On January 1, the government of the Indian state of Andhra Pradesh will introduce Vaddi Leni Runnam, a scheme that will provide women in self-help groups (SHGs) interest-free loans of up to INR 500,000 (USD 9,500) [1,2].

by Kristha Abores -

MICROCAPITAL BRIEF: Incofin Invests $3m in Equity in Arman Financial Services Limited of India

Arman Financial Services Limited (Arman), a non-bank finance company based in India, has announced that its board has approved a proposed equity investment from Belgian company Incofin Investment Management (Incofin).

by Kristha Abores -

MICROCAPITAL BRIEF: Bank Loans to Indian Microfinance Institutions Slow Down in First Half of Fiscal Year

According to data released by the Reserve Bank of India, bank loans to Indian microfinance institutions (MFIs) and self-help groups (SHGs) dropped during the first half of the fiscal year to INR 22,480 crore (USD 4.35 billion).

by Cameron Milani -

MICROCAPITAL BRIEF: Reserve Bank of India Recommends Against State Government Regulation of Microfinance

The Reserve Bank of India (RBI), India’s central banking authority, recently released a report titled, “Trend and Progress of Banking in India 2010-11,” expressing concern over state governments enacting local legislation to regulate microfinance institutions (MFIs).

by Cameron Milani -

MICROCAPITAL BRIEF: Sustainable Enterprise Fund, Oikocredit, Grace Foundation Invest in Barefoot Power to Support Renewable Energy in Remote Indian Communities

The Sustainable Enterprise Fund, an Austrian impact venture fund managed by Ennovent, along with Oikocredit, a Dutch cooperative investment fund, and Grace Foundation, a Christian organization in Australia that invests in social enterprise-based solutions to poverty, have made an investment in Barefoot Power, an Australian for-profit enterprise that manufactures and sells lighting products, solar phone chargers and business development services for low-income populations.