MICROCAPITAL BRIEF: MicroSave’s India Focus Notes Examines Microfinance Turmoil in Andhra Pradesh

MicroSave, a private consulting company that provides technical assistance to microfinance institutions (MFIs), recently published a series of papers that examine the trouble that has arisen in microfinance in the Indian state of Andhra Pradesh since late 2010. The five papers are published as India Focus Notes, which comprise a compilation of long-running series of papers from MicroSave analyzing Indian microfinance.

The first paper, India Focus Note 55, lays out the current situation in Andhra Pradesh should have been more widely foreseen, while the second, India Focus Note 56, presents the problems the industry now faces, including a lack of product diversification and a high level of client over-indebtedness [1][2].  India Focus Notes 57 and 58 propose alternative responses MFIs and governments could take in order to thwart future, similar predicaments [3][4]. The last of the five, India Focus Note 59, features clients’ views on microfinance prior and pursuant to the crisis [5].

By: Jacqueline Foelster, Research Associate

About MicroSave: Established in Uganda in 1998, MicroSave is a private consulting company that provides technical assistance, training and resource center. According to its website, it was “designed and financed by the United Nations Development Programme (UNDP) to address the mono-credit culture prevalent in East and Southern Africa.” MicroSave’s headquarters was relocated to Lucknow, India, in 2006 with the support of ICICI Bank. In 2008, MicroSave was transformed into a consulting company, which has since completed projects in eleven countries in Africa.

Sources and Resources:

[1] MicroSave, India Focus Note 55, http://www.microsave.org/sites/files/technicalBriefs/indiaFocusNotes/IFN_55_The_Andhra_Pradesh_Crisis.pdf

[2] MicroSave, India Focus Note 56, http://www.microsave.org/sites/files/technicalBriefs/indiaFocusNotes/IFN_56_The_AP_Crisis_So_What_Next.pdf

[3] MicroSave, India Focus Note 57, http://www.microsave.org/sites/files/technicalBriefs/indiaFocusNotes/IFN_57_The_Andhra_Crisis.pdf

[4] MicroSave, India Focus Note 58, http://www.microsave.org/sites/files/technicalBriefs/indiaFocusNotes/IFN_58_The_AP_Crisis_What_Should_the_Government_Do.pdf

[5] MicroSave, India Focus Note 59, http://www.microsave.org/sites/files/technicalBriefs/indiaFocusNotes/IFN_59_The_AP_Crisis_Clients’_Perspective.pdf

MicroCapital Universe Profile: MicroSave, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroSave
MicroCapital.org Article, December 17, 2010: “Local Government in Indian State of Andhra Pradesh Considers Additional Microfinance Regulation, Requires Disclosure of Operational Procedures”, https://www.microcapital.org/microcapital-brief-local-government-in-indian-state-of-andhra-pradesh-considers-additional-microfinance-regulation-requires-disclosure-of-operational-procedures/

MicroCapital.org Article, November 15, 2010: “India’s Microfinance Industry on Brink of “Collapse” Due to Credit Freeze in State of Andhra Pradesh”, https://www.microcapital.org/microcapital-brief-indias-microfinance-industry-on-brink-of-collapse-due-to-credit-freeze-in-state-of-andhra-pradesh/

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: