the bane of microfinance in India has been the perception of it being an exploitative business, one that charges usurious rates of interest from poor borrowers. From an optics perspective, it is a disastrous positioning of borrowers from low-income households and ‘for profit’ microfinance institutions (MFIs).
Right from the inception of microcredit entities, there has been strong criticism of high interest rates charged by MFIs. In recent years, this criticism has intensified. The common perception is that the unfortunate combination of profit-seeking MFIs, minimal competition and vulnerable borrowers has thrown up dangerous potential for exploiting the. . .
