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The success story of micro-finance in Andhra


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The Democracy
Shmae on you Reidff
by The Democracy on Nov 24, 2010 01:01 AM

It is understandable that media companies like Reidff has to earn money to make profit but publish anything for money? Then what is the difference between the crinimals (who kill others for money) and media houses who publish stories, for money, supporting crinimal businessmen? No responsibility for media houses?
Almost everyone, in this discussion broad, seems to know how that (and others) micro-finance company is responsible for the death of 100s of people in Andhra. Doesn't Reidff know anything about it? How much was paid?



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n pramod
what about the facts rediff?
by n pramod on Nov 23, 2010 10:23 PM

More than 100 people committed suicide till now because of higher interest rates and harrasment from lenders. Now the govt is working on an ordinance to curb the harrasments. and they cannot go ahead with that as the major microfinance company belogs to a close friend of Rahul Gandhi, who made 45 crores in to 2500 crores in less than 10 years.

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Gopal
Something wrong
by Gopal on Nov 23, 2010 04:54 PM  | Hide replies

Let me explain my doubt in better way:
- if borrowers are harrased and unsatisfied, then how can the default rate is under 2% with people borrowing more and more.
- if the above numbers are wrong then how MFI can be profitable.
- if MFIs use strong arm tactics and force people to commit suicide, then why borrowers are taking money from them.
- why the growth rate is more then 100% for some MFIs with 98% repayment rates.

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sathyam guda
Re: Something wrong
by sathyam guda on Nov 23, 2010 05:34 PM
It appears all MFI bashers are not using their heads or may be lacking one. None have reply to your questions because all the MFI bashers know that they are playing to the galleries of vested interests

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Gopal
How can the repayment be 98%
by Gopal on Nov 23, 2010 04:42 PM

After all the MFI bashing, I am not able to understand the fact that if the borrowers are harrased and unsatisfied, how the default rate is just 2% an if these numbers are wrong then MFI cannot be profitable ....MFI cannot maintain the recovery rate of 98% and still growing by using coersive tactics ...if that is the case ..borrowers will not borrow to commit suicide ..

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cbrcoder@rediffmail.com
Bad Karma
by cbrcoder@rediffmail.com on Nov 23, 2010 04:20 PM

This is BAD KARMA rediff. Pull off this paid PR.

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Eraser
success?
by Eraser on Nov 23, 2010 04:05 PM

media success thats it, reality is high interest rate and harrassers...

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sathyam guda
The success story of micro-finance in Andhra
by sathyam guda on Nov 23, 2010 02:30 PM  | Hide replies

Nail MFI sector. It is good and great. State Government, Central Government, RBI and other regulators have fullest powers and they can take measures. BUT, the fact is, Political bashing of MFIs, Governments (State/Central Bashing), Bankers and regulators bashing of MFIs, some citizens, academicians, some experts and critics bashing of MFIs is uncalled for and unjustified. MFIs are necessary for the poor. Once MFIs sector suffers poor get into misery and Government/banks will not be able to meet even fraction of credit needs of poor. All these (Govts/Banks) stop loaning poor on the pretext that loans are not repaid by the poor. Poor will have no where to go but to money lenders. Neither the political parties nor the media/nor the MFI bashers will come out and give any loans to poor. Now it is the choice of media, political parties/Govts (central Govt/Sate Govt) and other MFI bashers whether to continue bashing MFIs or properly think and see the largest benefits that come through MFIs and it is also their duty that they compensate the loss done to MFIs in the last two/three months.

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Mayuri Hajare
Re: The success story of micro-finance in Andhra
by Mayuri Hajare on Nov 24, 2010 06:59 AM
Most of the people seems to be reactive here than responsive. MFI is the only sector which gives loans to poor people@ 25 %. what public or private sector banks do. They purely and entirely neglect poor people. It is hard out there in rural india where poor people even dont understand how to open a bank saving account. Please check the accountability maintained by banks, among BPL and Antodaya BPL people. very very poor.. Banks are meant for rich people @ 5 - 10 % interest rate. while the Jamindars/moneylenders are meant for Poor people @ 50 - 1000 %. MFI has covered 5 crores people in last 15 years among this classes. has provided employement to almost 50000 rural indians, thanks to the IT people who usher Indian economy. But if by any means, this people are getting access to credit, who are the politicians who want to sack MFI?? IF GOI, RBI REALLY WANTS THE INTEREST RATE TO GO DOWN, LET MFI BE GIVEN THE STATUS OF MINI BANKS WHERE INTEREST RATE BE @ 2 - 7 %. THAT DAY, THESE MINIBANKS WILL SURPASS BIGGIES LIKE, SBI, HDFC

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susarla suryaprakasam
Microfinance in Andhra
by susarla suryaprakasam on Nov 23, 2010 01:43 PM  | Hide replies

Don't mislead public at large and investors. It was a total failure with politicians egging borrowers not to repay and that Govt. will write off. The borrowers at large are resorting to suicide at the drop of a hat as they find it beneficial to the family with Government largesse of public funds which mostly feed corruption or election. Hence for the sake of befooling SOBs, Don't circulate such shit. Take it from me, MFI will not survive in India.

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sathyam guda
Re: Microfinance in Andhra
by sathyam guda on Nov 23, 2010 02:29 PM
Nail MFI sector. It is good and great. State Government, Central Government, RBI and other regulators have fullest powers and they can take measures. BUT, the fact is, Political bashing of MFIs, Governments (State/Central Bashing), Bankers and regulators bashing of MFIs, some citizens, academicians, some experts and critics bashing of MFIs is uncalled for and unjustified. MFIs are necessary for the poor. Once MFIs sector suffers poor get into misery and Government/banks will not be able to meet even fraction of credit needs of poor. All these (Govts/Banks) stop loaning poor on the pretext that loans are not repaid by the poor. Poor will have no where to go but to money lenders. Neither the political parties nor the media/nor the MFI bashers will come out and give any loans to poor. Now it is the choice of media, political parties/Govts (central Govt/Sate Govt) and other MFI bashers whether to continue bashing MFIs or properly think and see the largest benefits that come through MFIs and it is also their duty that they compensate the loss done to MFIs in the last two/three months.

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