The Lagos State Chapter of the National Association of Microfinance Banks (NAMBLAG), a trade group of 820 microfinance banks (MFBs) in Nigeria, has reportedly taken measures seeking to reduce the cost of borrowing to single digit interest rates. Continue Reading »

By Chuck Waterfield, Published by MicroFinance Transparency, June 2011, 10 pages, http://www.microfinancegateway.org/gm/document-1.1.9115/The-Challenge-of-Understanding-Pricing-of-Micro-Loans_Jun2011_ENG.pdf. Continue Reading »

SKS Microfinance Limited (SKS), an Indian microfinance institution (MFI), reportedly has obtained a loan of INR 1 billion (USD 20.1 million) from the government-backed Small Industries Development Bank of India (SIDBI), a loan wholesaler to MFIs in India. Continue Reading »

“Competition, Loan Rates and Information Dispersion in Microcredit Markets” by G. Baquero, Malika Hamadi, and Andréas Heinen; published by the European School of Management and Technology; November 21, 2011; 58 pages; available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2006485& Continue Reading »

Cambodian government officials reportedly are looking to negotiate down the interest rates on microfinance loans, arguing that current rates are unsustainable for the country’s rural farming population and that defaults are causing many farmers to become landless. [1] Continue Reading »

On January 1, the government of the Indian state of Andhra Pradesh will introduce Vaddi Leni Runnam, a scheme that will provide women in self-help groups (SHGs) interest-free loans of up to INR 500,000 (USD 9,500) [1,2]. Continue Reading »

With default rates reportedly ranging from seven to 10 percent in Tanzania, commercial banks in the country are charging lending rates between 14 and 24 percent. Continue Reading »

Published by the Western Hemisphere Department of the International Monetary Fund (IMF) as IMF Working Paper No. WP/11/175, 2011, 41 pages, available at: http://www.imf.org/external/pubs/ft/wp/2011/wp11175.pdf Continue Reading »

MFTransparency, a US-based nongovernmental organization (NGO) that collects and publishes information on microfinance product pricing, and the 30-member Association of Ethiopian Microfinance Institutions (AEMFI) plan to launch the “Transparent Pricing Initiative in Ethiopia” at the 2011 African Microfinance Conference in Addis Ababa, Ethiopia, on September 20, 2011. Continue Reading »

In an effort to broaden access to microfinance and encourage lending by private banks, the Brazilian government is expanding its National Program of Oriented Productive Microcredit (PNMPO in Portuguese), an initiative through which the government provides funding to microfinance institutions (MFIs) and other financial service providers for on-lending to small businesses and microentrepreneurs. Continue Reading »

MFTransparency, a US-based nongovernmental organization (NGO) that collects and publishes information on microcredit products and pricing, recently received the first data submissions from Filipino microfinance institutions (MFIs) that are participating in its “Transparent Pricing Initiative.” Continue Reading »

The Association of Microfinance Institutions in Rwanda (AMIR), an 84-member organization that was established in 2007 to build the capacity of the microfinance industry in Rwanda, has cautioned microfinance institutions (MFIs) in Rwanda regarding the risks of offering the same financial products to all clients. Continue Reading »

The National League for Democracy (NLD), a banned political opposition party in Myanmar (formerly known as Burma), is reported to be planning the launch of a microcredit program to provide small, interest-free-loans in South Okkalapa Township of Burma’s capital city, Rangoon. Continue Reading »

A recent article published by Inter Press Service (IPS), an Italy-based global news agency, written by Lewis Mwanangombe, a Zambian journalist who writes for the Associated Press and the Pan-African News Agency, highlights the limited availability of financial services in Zambia. Referencing a World Bank report, Mr Mwanangombe points out, “less than eight percent of Zambian adults have bank accounts. For the millions who make their living in the informal economy, this prevents them from earning interest on any savings they have or securing credit needed to expand small businesses beyond mere survival” [1]. Continue Reading »

MFTransparency, a US-based nongovernmental organization that provides information on credit products and pricing, recently announced plans to expand its Transparent Pricing Initiative to Guinea Bissau and Tanzania with the objective of collecting and publishing pricing data for microfinance products offered in each country and providing training on financial literacy for microfinance clients. Continue Reading »

The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Mohammed Khaled, CGAP representative for the Middle East-North Africa Region, that explores the impact of the recent leadership change in Tunisia on microfinance regulation in the country. Continue Reading »

Mr Sushil Munhot, chairman and managing director of the government-owned Small Industries Development Bank of India (SIDBI), recently argued in an interview with Indian newspaper The Economic Times that SIDBI complements commercial banks while also offering the added value of providing equity funding to small- and medium-sized enterprises (SMEs). Continue Reading »

The Reserve Bank of India (RBI), India’s central banking authority, recently announced that it has accepted – with some modifications – the framework of recommendations issued by the Malegam Committee for the country’s microfinance industry. Continue Reading »