1. MICROFINANCE CRISIS IN ANDHRA PRADESH AND REGULATORY RESPONSE.
- Author
-
LAKSHMI, K. and VASANTHA, S.
- Subjects
MICROFINANCE ,MARKETING strategy ,CREDIT management ,PERSONAL loans ,ECONOMIC history - Abstract
The microfinance sector of Andhra Pradesh was recently impaired by a series of unfortunate incidents that happened due to extensive lending which resulted in over-indebtedness, defaults and in some cases some of the clients even committed suicide. The main reason for such incidences was said to be the high rates of interest and the marketing tactics such as collection methods adopted by MFIs. This paper explore the reasons behind the hardships of MFIs' clients, causes of inefficiency in operations which have increased the cost of credit and problems with the current marketing strategy and other related areas. This paper focuses the need for policy implications of the various regulatory measures that the Government subsequently should take to control and regulates micro-lending practices in the state. [ABSTRACT FROM AUTHOR]
- Published
- 2013