Hulme, David and Arun, Thankom Gopinath
What’s Wrong and Right with Microfinance.
Economic and Political Weekly, 46
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Official URL: http://www.epw.in/commentary/whats-wrong-and-right...
Recent events in south Asia have led to an unexpected reversal in the narrative of microfinance, long presented as a development success. Despite charges of poor treatment of clients, exaggeration of the impact on the poorest as well as the risks of credit bubbles, the sector can play a non-negligible role in reaching financial services to low-income households. In regulating the sector, there is need for caution in setting interest rate ceilings on micro-loans and for greater openness to micro-savings products.
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