India's Major Crisis in Microlending
WSJ / Eric Bellman
07-Nov-2010 (2 comments)

Microcredit is the lending of tiny amounts of money, usually less than $200, to entrepreneurs who use the loans to start or expand small businesses such as a vegetable stand or a bicycle repair shop. Most microcredit firms lend money through women's groups and reach out to borrowers who are either too far from or too poor to borrow from a bank. The repayment rate on the loans have tended to be better than that of richer borrowers. Interest rates, however, can be high, from 25% to 100% a year, mostly due to the cost of administering millions of tiny loans in remote areas.

recommended by varjavand



I am just wondering...

by comrade on

If president Change Obama has delivered any message from the World Bank to the Indian government in this regard...

Never increase, beyond what is necessary, the number of entities required to explain anything.




by varjavand on

A well intentioned movement that started by Dr. Yunus is being exploited in India and turned into usury