Microloan recipients fall for first time
The Daily Star
February 6, 2013
The number of the world’s poor who benefited from microcredit has declined for the first time, largely due to alleged abuses in India, uncertainty in Bangladesh and a lack of innovations. Read more.
Microfinance reaches fewer in world’s poorest but witnesses healthy trend in Pakistan
February 6, 2013
…The report highlights an ongoing challenge — how does the sector more effectively connect with those around the world who are financially excluded. The Microcredit Summit Campaign’s continued examination of innovative ways to reach underserved communities, like the potential of digital technology combined with appropriately designed products and services will be critical in accelerating financial inclusion. Read more.
Microcredit borrowers drop globally
February 4, 2013
…In July 2010, the number of domestic poor families availing the services of microfinance institutions stood at 13,93,000, whereas the number has increased by 26 per cent to 17,60,000 in 2012, Shrestha added. “Of the total number of poor families receiving microcredit, some might be taking loans from various microfinance institutions overindebting themselves, which has become a key problem, besides mission drift of some of the microfinance institutions that have been overconcentrating in the Tarai districts to save cost of operation in recent years.”
However, microfinance institutions have been instrumental in poverty reduction in the country, despite market distortion and mission drift of some institutions, Shrestha opined. Read more.
A few bad apples give microfinance a bad name
The Boston Globe
February 21, 2013
…These are cautionary tales about what can happen when institutions appear to be more interested in their own growth than the financial well-being of their clients. For-profit groups that charge high interest rates and pay high salaries to their own executives give microfinance a bad name. They are making money off the backs of the poor, not giving the poor a leg-up. The good guys in this industry should do their best to sound the alarm against such practices. Microcredit is a crucial tool against poverty, and its reputation must be preserved. Read more.
Microcredit loans fall for first time in 13 years
The Globe and Mail
February 15, 2013
The number of people around the world who have access to microcredit financing has fallen for the first time in 13 years, reflecting turmoil in the sector and the fallout from the global financial crisis. The total number of people with access to microloans and other financial services tumbled by 10 million in 2011 from a year earlier, an annual tally by the Microcredit Summit Campaign to be released Tuesday shows. It is the first decline since the organization began tracking these numbers in 1998. Read more.