Comments for Microfinance News http://www.microfinancefocus.com/news An Initiative of Microfinance Focus (www.microfinancefocus.com) Wed, 12 Oct 2011 07:50:53 +0000 hourly 1 http://wordpress.org/?v= Comment on Opinion : Is religion compatible with microfinance ? by Remy Ssali http://www.microfinancefocus.com/news/2010/07/24/opinion-is-religion-compatible-with-microfinance/comment-page-1/#comment-13851 Remy Ssali Wed, 12 Oct 2011 07:50:53 +0000 http://www.microfinancefocus.com/news/?p=5298#comment-13851 Mr. Ddungu while I respect your views I would like to reaffirm that Matthew Chapter 25 verse 27 says: "You ought therefore to have put my money to the exchangers, and then at my coming I should have received my own with interest." Microfinance is and will remain a business involving granting credit to the socially underprivileged people. You can only do it successfully by charging high interest rates or else it will in no time cease to be a worthwhile business. Mr. Ddungu while I respect your views I would like to reaffirm that Matthew Chapter 25 verse 27 says: “You ought therefore to have put my money to the exchangers, and then at my coming I should have received my own with interest.”

Microfinance is and will remain a business involving granting credit to the socially underprivileged people. You can only do it successfully by charging high interest rates or else it will in no time cease to be a worthwhile business.

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Comment on Microfinance in India: Twin Steps towards Self-Regulation by Dr.M.Prasadarao http://www.microfinancefocus.com/news/2010/01/10/microfinance-in-india-twin-steps-towards-self-regulation-3/comment-page-1/#comment-13798 Dr.M.Prasadarao Wed, 03 Aug 2011 01:38:50 +0000 http://www.microfinancefocus.com/news/?p=2871#comment-13798 The bubble would be unavoidable  concept of declination of the spread as the whole financial sector is volatile ignited by the faulty reports, practices and currption. We shall search the pressure points, which the microfinance (credit)model is surviving on. The social business concept with supported by the peer pressure and group dynamics  in process to recovery of loans. The regulations pertaining to credit ratio and interest rates are expected to influence soon or later but the major factor, influencing the industry is  non-existence of Human Resource Management/skills at structure level and strategy level. The office bearers are  targetting and further dealing with loan recovery only. Similar to any NBFC and retail banking sector in MFIs also the shall introduce incentives and other encouraging factors through HR interventions endorsed by market support could provide a solutions for survival and revival. Better HR manual, which includes recruitment policy, training, incentives, communication skills among the clients, offier bearers and the executives at ground level  at strategy level as the industry surviving on human relations and linkages is immediate need of the time. The bubble would be unavoidable  concept of declination of the spread as the whole financial sector is volatile ignited by the faulty reports, practices and currption. We shall search the pressure points, which the microfinance (credit)model is surviving on. The social business concept with supported by the peer pressure and group dynamics  in process to recovery of loans. The regulations pertaining to credit ratio and interest rates are expected to influence soon or later but the major factor, influencing the industry is  non-existence of Human Resource Management/skills at structure level and strategy level. The office bearers are  targetting and further dealing with loan recovery only. Similar to any NBFC and retail banking sector in MFIs also the shall introduce incentives and other encouraging factors through HR interventions endorsed by market support could provide a solutions for survival and revival. Better HR manual, which includes recruitment policy, training, incentives, communication skills among the clients, offier bearers and the executives at ground level  at strategy level as the industry surviving on human relations and linkages is immediate need of the time.

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Comment on Gary Ford, new CEO of MicroCredit Enterprises by Mr. Dawda .S. Nyangado http://www.microfinancefocus.com/news/2010/01/15/gary-ford-new-ceo-of-microcredit-enterprises/comment-page-1/#comment-12700 Mr. Dawda .S. Nyangado Fri, 10 Jun 2011 14:03:30 +0000 http://www.microfinancefocus.com/news/?p=3045#comment-12700 Dear CEO, I am requesting for MicroCredit Enterprises for the poor people of our nation and i really know with your assistant and good rules and valves for Microfinancial services system we can make a difference in the youth wings of our communities. Hope to hear from you soon and please don't worry to ask any questions concerning this important request for funding poor vulnerable children. Dear CEO,
I am requesting for MicroCredit Enterprises for the poor people of our nation and i really know with your assistant and good rules and valves for Microfinancial services system we can make a difference in the youth wings of our communities. Hope to hear from you soon and please don’t worry to ask any questions concerning this important request for funding poor vulnerable children.

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Comment on BlueOrchard PE Fund invests Rs 50 cr in Asmitha Microfin by Funding options for non-bank originators – Private Equity « IFMR Blog http://www.microfinancefocus.com/news/2009/09/02/blueorchard-pe-fund-invests-rs-50-cr-in-asmitha-microfin/comment-page-1/#comment-12697 Funding options for non-bank originators – Private Equity « IFMR Blog Fri, 10 Jun 2011 12:19:16 +0000 http://www.microfinancefocus.com/news/?p=982#comment-12697 [...] names like Oikocredit International that bought a 10% stake in Kerala based ESAF Microfinance and BlueOrchard PE which pumped INR 50 Crore in Asmitha Microfin Limited in addition to others like Avishkaar Goodwell and Unitus.  Very recently, Mumbai-based Svasti [...] [...] names like Oikocredit International that bought a 10% stake in Kerala based ESAF Microfinance and BlueOrchard PE which pumped INR 50 Crore in Asmitha Microfin Limited in addition to others like Avishkaar Goodwell and Unitus.  Very recently, Mumbai-based Svasti [...]

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Comment on Opinion : Is religion compatible with microfinance ? by Twaha K Ddungu http://www.microfinancefocus.com/news/2010/07/24/opinion-is-religion-compatible-with-microfinance/comment-page-1/#comment-12660 Twaha K Ddungu Wed, 08 Jun 2011 23:23:13 +0000 http://www.microfinancefocus.com/news/?p=5298#comment-12660 If there is a way microfinancing can exsist without charging interest then i can say its compatible with religion especially Islam,But its doesnot exist. As of views that"the Lord was happy with the two guys in the christian parables who invested and 100% profited".....I Thnk this never meant credit with interest. The world would be a better place without usury.Think about it? If there is a way microfinancing can exsist without charging interest then i can say its compatible with religion especially Islam,But its doesnot exist.
As of views that”the Lord was happy with the two guys in the christian parables who invested and 100% profited”…..I Thnk this never meant credit with interest.

The world would be a better place without usury.Think about it?

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Comment on Bandhan, Vijay Mahajan given Microfinance India Awards by Suman Bagchi http://www.microfinancefocus.com/news/2009/10/26/bandhan-vijay-mahajan-given-microfinance-india-awards/comment-page-1/#comment-12457 Suman Bagchi Sun, 05 Jun 2011 16:16:41 +0000 http://www.microfinancefocus.com/news/?p=1592#comment-12457 Bandhan is now a largest NGO in India & second position all over the world. It's very proud for me, because within short time this organization get this award by Chandra shekhar dada. Really how dynamic leadership is he! Commitment, values, ideal, good leadership, punctual & right vision can able to succeed & create a excellent team management for gaining its goals. Dada go ahead & keep it up. God bless u , ur organization & ur family. Suman Bagchi Trainer BRAC Training & Resources Center, Rangpur Bangladesh Mobile:088-01712-176135 Bandhan is now a largest NGO in India & second position all over the world. It’s very proud for me, because within short time this organization get this award by Chandra shekhar dada. Really how dynamic leadership is he! Commitment, values, ideal, good leadership, punctual & right vision can able to succeed & create a excellent team management for gaining its goals. Dada go ahead & keep it up. God bless u , ur organization & ur family.
Suman Bagchi
Trainer
BRAC Training & Resources Center, Rangpur
Bangladesh
Mobile:088-01712-176135

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Comment on Brinda Karat urges to fix interest rate cap for microfinance institutions by Mohit Kasera http://www.microfinancefocus.com/news/2010/10/29/brinda-karat-urges-to-fix-interest-rate-cap-for-microfinance-institutions/comment-page-1/#comment-12404 Mohit Kasera Sat, 04 Jun 2011 09:53:02 +0000 http://www.microfinancefocus.com/news/?p=6534#comment-12404 I think that initiating the cap on the interest rate on the MFI's could not be justified in any way, as the operating model of most of the MFI's very complicated and interest cap will work as poison for the MFI industry. Having sympathy with the poor (women) is understood but u might need to look at the scenario with broader view. MFI's and poor can not sustain in isolation and the present economic condition with higher cost of the funds in market are already eating up the margins, which questioning the sustainability of the many industry player. What government and regulator can do is that, instead of wasting the countryman's money in the many so called poverty alleviation schemes government should create a Central Body for Micro Finance which will work as regulator and facilitator for the industry and also work as the executioner for the central funded schemes national wide in a well professional manner. I think that initiating the cap on the interest rate on the MFI’s could not be justified in any way, as the operating model of most of the MFI’s very complicated and interest cap will work as poison for the MFI industry. Having sympathy with the poor (women) is understood but u might need to look at the scenario with broader view. MFI’s and poor can not sustain in isolation and the present economic condition with higher cost of the funds in market are already eating up the margins, which questioning the sustainability of the many industry player.
What government and regulator can do is that, instead of wasting the countryman’s money in the many so called poverty alleviation schemes government should create a Central Body for Micro Finance which will work as regulator and facilitator for the industry and also work as the executioner for the central funded schemes national wide in a well professional manner.

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Comment on Microfinance regulation: A more subtle approach by jeetendra http://www.microfinancefocus.com/news/2010/11/03/microfinance-regulation-a-more-subtle-approach/comment-page-1/#comment-12203 jeetendra Mon, 30 May 2011 09:08:07 +0000 http://www.microfinancefocus.com/news/?p=6547#comment-12203 MIF was very strong concept  earlier but now it become Poor now bcoz of large number of MFI is working in same area and all are given loan to the same client so Problem is over loading on client one poor and illiterate client  take very much  loan but couldn't make repayment on the time and then the company make pressure on staff and other client this is the reason so that borrower take negative step . rules of RBI is not follow by companies due to much business and much Profit RBI should take same strong step in against of such company  MIF was very strong concept  earlier but now it become Poor now bcoz of large number of MFI is working in same area and all are given loan to the same client so Problem is over loading on client one poor and illiterate client  take very much  loan but couldn’t make repayment on the time and then the company make pressure on staff and other client this is the reason so that borrower take negative step . rules of RBI is not follow by companies due to much business and much Profit RBI should take same strong step in against of such company 

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Comment on Pakistan’s Microfinance Sector: Rebuilding the flood hit nation by Muhammad Anwar Hashmi http://www.microfinancefocus.com/news/2010/09/07/pakistan%e2%80%99s-microfinance-sector-rebuilding-the-flood-hit-nation/comment-page-1/#comment-12134 Muhammad Anwar Hashmi Thu, 26 May 2011 10:54:44 +0000 http://www.microfinancefocus.com/news/?p=5933#comment-12134 Due to lauch of the government sponsored support scheme micro finance sector is in critical jeopardy. Flood hit areas, being affected due to terror war, resultantly, it appears that micro finance institutions face it quite difficult to reach and disburse micro loans and collect micro savings from troubled areas of flood particularly in Pakhtunkhawah. Due to record high wheat production in K.P, now there is a need to revamp micro finance stategy in toubled areas of K.P and there is a need to generate micro finance savings during the year 2011 and then to encouarge people to avail loan facilities in the coming months (end of 2011 and start of 2012). Due to lauch of the government sponsored support scheme micro finance sector is in critical jeopardy. Flood hit areas, being affected due to terror war, resultantly, it appears that micro finance institutions face it quite difficult to reach and disburse micro loans and collect micro savings from troubled areas of flood particularly in Pakhtunkhawah.

Due to record high wheat production in K.P, now there is a need to revamp micro finance stategy in toubled areas of K.P and there is a need to generate micro finance savings during the year 2011 and then to encouarge people to avail loan facilities in the coming months (end of 2011 and start of 2012).

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Comment on Indian Microfinance on the verge of consolidation: Aavishkaar CEO by Karma yogi http://www.microfinancefocus.com/news/2009/08/05/indian-microfinance-on-the-verge-of-consolidation-aavishkaar-ceo/comment-page-1/#comment-12127 Karma yogi Wed, 25 May 2011 15:16:28 +0000 http://www.microfinancefocus.com/news/?p=568#comment-12127 profiting from poverty? Under the garb of narrowing the gap between rich and poor by increasing the access of poor to micro credit, majority of agencies in India have already converted themselves into full fledged financial companies. Getting funds at lower/negligible rate of interest and lending them to some affluent few who can take care of their recovery interests at higher rate of interest has become the order of the day. Let there be a social audit about the micro credit disbursal mechanism of SKS, Sahayata, Share, Ujjivan, Bandan, Sarada,Asmitha,suryodaya etc.,etc.,etc., including Public Sector Banks like State Bank of India and Indian Bank in two Centers located at Chintamaniswar Area of Bhubaneswar headed by affluent, hooligan, self styled women leaders named Usha Nair and Nirupama Mishra, Skeletons would tumble out of cupboard. Close to 60% of their micro credit portfolio goes into the hands of touts, locally influential and vocal women who repeatedly borrow funds from these Micro credit institutions by showing fake and fictitious women groups (in most cases the women are hired for 4 to 5 sittings for petty sums) and take advantage of the fund drawn so, by lending it in the open market at interests ranging from 60 – 84% p.a. There are instances where these women agents of our Micro finance corporations resorting all sorts of foul and unethical mechanism of recovering loans. There are reported incidents where a few petty business borrowers from these micro lending institutions have committed suicides, unable to cope up with the atrocities. The Government of Andhra Pradesh, Department of Rural Development has taken the matter seriously and set up a Help Line No. 155321 where any aggrieved borrower subjected to inhuman and unethical treatment from the Micro lending Institutions can seek intervention from the Law enforcing agencies . Unless and until thorough analysis and inquiry into the existing credit portfolio of these so called Micro lending Institutions is carried out, they should not be allowed to raise any more concessional/ public funds either through IPO or from any Public Funding Institutions. In the absence of any regulating mechanism, the micro credit has become a lucrative business for many; and over the last few years, many such institutions which do not have any presence in the market have become fat overnight. Will our big bosses from Ministry of Finance and RBI would take any initiative to introspect and analyse the situation instead of just peeping through the cooked up balance sheets and tailor made target achievements of the MFIs?  profiting from poverty? Under the garb of narrowing the gap between rich and poor by increasing the access of poor to micro credit, majority of agencies in India have already converted themselves into full fledged financial companies. Getting funds at lower/negligible rate of interest and lending them to some affluent few who can take care of their recovery interests at higher rate of interest has become the order of the day. Let there be a social audit about the micro credit disbursal mechanism of SKS, Sahayata, Share, Ujjivan, Bandan, Sarada,Asmitha,suryodaya etc.,etc.,etc., including Public Sector Banks like State Bank of India and Indian Bank in two Centers located at Chintamaniswar Area of Bhubaneswar headed by affluent, hooligan, self styled women leaders named Usha Nair and Nirupama Mishra, Skeletons would tumble out of cupboard. Close to 60% of their micro credit portfolio goes into the hands of touts, locally influential and vocal women who repeatedly borrow funds from these Micro credit institutions by showing fake and fictitious women groups (in most cases the women are hired for 4 to 5 sittings for petty sums) and take advantage of the fund drawn so, by lending it in the open market at interests ranging from 60 – 84% p.a. There are instances where these women agents of our Micro finance corporations resorting all sorts of foul and unethical mechanism of recovering loans. There are reported incidents where a few petty business borrowers from these micro lending institutions have committed suicides, unable to cope up with the atrocities. The Government of Andhra Pradesh, Department of Rural Development has taken the matter seriously and set up a Help Line No. 155321 where any aggrieved borrower subjected to inhuman and unethical treatment from the Micro lending Institutions can seek intervention from the Law enforcing agencies . Unless and until thorough analysis and inquiry into the existing credit portfolio of these so called Micro lending Institutions is carried out, they should not be allowed to raise any more concessional/ public funds either through IPO or from any Public Funding Institutions. In the absence of any regulating mechanism, the micro credit has become a lucrative business for many; and over the last few years, many such institutions which do not have any presence in the market have become fat overnight. Will our big bosses from Ministry of Finance and RBI would take any initiative to introspect and analyse the situation instead of just peeping through the cooked up balance sheets and tailor made target achievements of the MFIs? 

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