Micro Credit – Macro crisis

[YashwanthX]

The Father of Microfinance and Nobel peace prize winner Mr. Muhammad Yunus never expect that the social mission of microfinance has gone badly in India. He is the founder of Grameen Bank and he developed the concept of Micro credit model In Bangladesh to eradicate the poverty in rural community. The fundamental of microfinance / Micro credit is to empower the poor people by giving the small loans with low interest rate. In the past few days, 24 rural Micro finance borrowers have committed suicides in Andhra Pradesh who are harassed by the Micro Finance Institutions (MFIs).

The Andhra Pradesh state government has been following the best model of Indira Kranthi Patham by Society for elimination of Rural Poverty ([url=http://www.serp.ap.gov.in]http://www.serp.ap.gov.in[/url] ) which arranges the loans from nationalized banks to the Self help groups with subsidized interest rate. In the early 1990s, the Development of Women and Children in Rural Areas (DWCRA) model was also very successful one in Andhra Pradesh. From the past few years, the micro finance sector is growing massively. Most of MFIs are forcing the poor women to enroll and majority of them are already members in self-help groups who are well nurtured by the Government schemes. They indulge in very unethical practices in collecting their loan money which are humiliating and dampen the self respect of the women which push them to suicides. The MFIs are charging very high interest rates like 24% per annum from the poor borrowers and enjoying this money with high paid salaries and perks to their CEOs. They are just like private money lenders in corporate way by utilizing the Self Help groups.


On October,14th, the AP state government came out with legislation to control the MFIs. That is a good sign to help the poor rural borrowers from the clutches of fraudulent MFIs. As per new ordinanace, the government is going to help the MFI’s victims by debt-swapping through commercial banks by providing new loans with low interest rates. We hope the new ordinance
will control and regulate the Micro finance system and Reserve Bank of India intervention  must be required to formulate the guidelines for MFIs. You can read a Brief note on ordinance: [url=http://bit.ly/cF1p7a.]http://bit.ly/cF1p7a.[/url]

support  farmers : [url=http://www.farmersindia.blogspot.com]www.farmersindia.blogspot.com[/url]

[Denzel]

*=:..
suicides jaruguthunnai kada  !q#

[Deletedid1]

hello mama how r u.

CBN time lo ee DWACRA baga hit ayyindi kada.............. ippudu enduku ilaaa............. poor management aaa  sCo_hmmthink sCo_hmmthink