Microcredit firms in India were also accused of siphoning borrowers from government-run "self-help groups" — women's organizations that can borrow small amounts at subsidized interest rates from government-owned banks.
In India's Andhra Pradesh state, loan repayments started falling sharply late last year after lawmakers there enacted a tough law to restrict lending by microcredit firms, which they said had lent more money than many borrowers could afford to repay.
SKS was once seen as a model for how microcredit firms could do very well for themselves by making loans as small as $50 to basket weavers and other poor people.
Shimada says the firm is working hard to build relationships with NGOs, microcredit firms and loosely affiliated sales networks in order to get its product into the hands of those who really need it.
In contrast to existing experimental work, the results indicate a setting in which microcredit can improve firm profitability, and suggest that GE effects can substantially shape microcredit's effectiveness.
I defined this in two ways for each country studied: the proportion of total clients as a share of national population, and the average size of loan (gross loan portfolio over total clients), using microfinance data from the Microcredit Summit Campaign and MIX Market), a microfinance auditing firm.
It was success stories like this that drew Khosla, a former partner in Silicon Valley venture capital firm Kleiner, Perkins, Caufield & Byers, to microcredit in his native India.
It was success stories like this that drew Khosla, an affiliated partner in Silicon Valley venture capital firm Kleiner, Perkins, Caufield & Byers, to microcredit in his native India.
"Thanks to the microcredit programme I was able to rebuild my house.
Leaders such as Nobel laureate Muhammad Yunus and Fazle Abed, who labored to demonstrate the power of microcredit as an alternative asset class, have catalyzed a flood of funds and firms investing in the space.
