The credit risk measurement systems in MFIs need to evolve substantially in order to sustainably provide collateral-less loans to poor clients. While lending through the group guarantee mechanism has ensured sound portfolio quality for long periods of time, we have in the recent past witnessed situations when there has been a rapid decline in portfolio […]
Sanitation and energy remain two important challenges for India. And it seems a couple of Indian innovators may have a solution. Nitin Bondal and Raghuvendra Rao have set up STEPS, a company that uses Polycrack system developed by the duo to convert all kind of plastic waste to crude. They have recently been featured by […]
Like any other enterprise, microenterprises, too require risk capital. While equity is the foremost form of risk capital, and could come from internal or external sources, microenterprises face severe constraints in accessing it. Credit guarantee schemes address the need for risk capital partially as these facilitate the flow of loan funds into microenterprises. However, by […]
Challenging Work Environment for MFI Field Staff Members… The operational employees of MFIs have challenging work life which includes extensive work in the field as well as back-office work. A typical loan officer in an Indian MFI may spend well up-to eight hours in the field performing the activities such as – Collection meetings, Training […]
The good news for the microfinance sector in India is the robust growth it has displayed during 2013. When the going is good, we tend to get complacent. Growth needs to be applauded, no doubt. But we must also critically analyze what has made this possible. Better availability of on-lending funds as well as risk […]
