Microcredit in India

Bwass · Jun 17th, 2008, 02:38

Hey guys,
I was just wondering if the concept of microcredit was widespread in India, it has already done miracles in a lot of other countries, namely in neighbouring Bangladesh, where it's originated.

edwardseco · Jun 17th, 2008, 07:00

It is there but before you break out the parades consider the concept of relending. You borrow a sum, then borrow a larger sum to pay back the first plus and so on. On paper it looks great. This has happened in Bangladesh too. I have seen great individual examples going on in India long before Younis. Here is the rub, scale. Once you try to scale this up to a significant level it becomes bureaucracy and opportunity for abuse including relending. Its an interesting dilemna in development..

crvlvr · Jun 17th, 2008, 07:21

http://en.wikipedia.org/wiki/Microcredit

Quote:

In its first ever list of World's Top 50 Microfinance Institutions, the US business magazine has named Kolkata-based Bandhan at the second position. Bandhan, as well as two other Indian MFIs -- Microcredit Foundation of India (ranked 13th) and Saadhana Microfin Society (15th) -- have been placed even above Bangladesh-based Grameen Bank, which along with its founder Mohammed Yunus was awarded Nobel Prize in 2006. Grameen Bank has been ranked 17th in the list topped by another Bangladesh-based institution, ASA. India, along with Bangladesh, are jointly home to the maximum number of MFIs to be featured in the list.

A link on why Microcredit may be failing in India:

http://www.rediff.com/money/2006/nov/10spec.htm

capt_mahajan · Jun 17th, 2008, 07:26

Found it!

2005 article, worth a read

http://www.indiatogether.org/2005/nov/eco-microfin.htm

Cardamom · Jun 17th, 2008, 09:19

Have you ever checked this organization out: http://www.kiva.org/
I make some small loans twice a year when I get a bonus. It's really interesting to follow.

-C

federica · Jun 17th, 2008, 17:19

Cardamom, that looks really interesting. I just had a first look, but will read more later. Their open concept where you can see the personal relation makes it special.

Bwass · Jun 18th, 2008, 05:38

Thanks for your great answers, really interesting stuff in there!

Jun 17th, 2008, 02:38	#1
Bwass Member Join Date: Jun 2008 Location: Quebec City, Canada Posts: 13	Microcredit in India Hey guys, I was just wondering if the concept of microcredit was widespread in India, it has already done miracles in a lot of other countries, namely in neighbouring Bangladesh, where it's originated.

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Jun 17th, 2008, 07:00	#2
edwardseco Maha Guru Member Join Date: Sep 2001 Location: Land that shakes and bakes. Posts: 3,782	It is there but before you break out the parades consider the concept of relending. You borrow a sum, then borrow a larger sum to pay back the first plus and so on. On paper it looks great. This has happened in Bangladesh too. I have seen great individual examples going on in India long before Younis. Here is the rub, scale. Once you try to scale this up to a significant level it becomes bureaucracy and opportunity for abuse including relending. Its an interesting dilemna in development..

Jun 17th, 2008, 07:26	#4
capt_mahajan (in charge of navel affairs) Join Date: Sep 2005 Location: India Posts: 9,741	Found it! 2005 article, worth a read http://www.indiatogether.org/2005/nov/eco-microfin.htm

Jun 17th, 2008, 09:19	#5
Cardamom Senior Member Join Date: Jan 2008 Location: New York, NY Posts: 203	Have you ever checked this organization out: http://www.kiva.org/ I make some small loans twice a year when I get a bonus. It's really interesting to follow. -C

Jun 17th, 2008, 17:19	#6
federica Maha Guru Member Join Date: Jun 2004 Location: Bavaria Posts: 893	Cardamom, that looks really interesting. I just had a first look, but will read more later. Their open concept where you can see the personal relation makes it special.

Jun 18th, 2008, 05:38	#7
Bwass Member Join Date: Jun 2008 Location: Quebec City, Canada Posts: 13	Thanks for your great answers, really interesting stuff in there!

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