Good morning friends,
Few points from my side
– Bond between MFI and borrower is stronger than what you and I have with SBI or ICICI. Especially women are very loyal customers.
-
MFI usually lend in phases, say first 15000, then 30000 to 50000 to the same customer/group. So there is growth even from old Customers.
-
Any MFI which is converted to small bank will have some cost and adjustment time. Not all can survive the change.
-
Won’t these small banks give priority and shift to larger sum of lending?
Few more interesting links
http://swaminomics.org/don’t-cap-microfinance-lending-rates/
http://thinkninkwithsaurabhsinha.blogspot.in/2013/06/microfinance-analysis-on-how-ap-govt.html?m=1
Every industry has its pros and cons.
I am not expert in financial sector so views from experts are always welcomed.
| Subscribe To Our Free Newsletter |
