MICROCAPITAL BRIEF: Three Agents of SKS Microfinance Arrested in India After Borrower Complains of Harassment

Three agents of the Indian microfinance institution (MFI) SKS Microfinance have been arrested for allegedly harassing borrowers in the Indian state of Andhra Pradesh.

State police said the arrests were made after a borrower complained of being illegally pressured by three agents of SKS Microfinance and Spandana Sphoorty Financial to repay two outstanding loans totaling approximately USD 1,300.

By Witt Gatchell, Research Associate

About Spandana: Spandana Sphoorty Financial Ltd. provides microcredit and credit-plus services to low-income households in India. The Company was founded by Padmaja Reddy in 1998 and receives its funding from development financial institutions and banks. As of year-end 2009 had a gross loan portfolio of USD 787 million and 3.7 million borrowers.

About SKS Microfinance: SKS Microfinance is a microfinance institution (MFI), launched in 1998, that delivers microfinance products through a group-lending model to impoverished women in India. It is a for-profit, non-banking finance company, which converted to a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. As of March 31, 2010, SKS Microfinance Private Limited reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 897 million, a gross loan portfolio of USD 653 million, a return on assets of 4.96 percent, a return on equity of 21.56 percent and 5.79 million active borrowers.

Sources and Additional Resources:
[1] The Wall Street Journal, “Backlash in Microlending” by Eric Bellmand and Arlene Chang
http://online.wsj.com/article/SB1000142405270230435410457556824242058254…

MICROCAPITAL BRIEF: Andhra Pradesh Government Plans Legislation to Restrict Collection Practices of Microfinance Institutions (MFIs) After Rise in Suicides Among Borrowers
https://www.microcapital.org/microcapital-brief-andhra-pradesh-government…

MicroCapital’s Microfinance Universe profile: Spandana
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Spa…

MicroCapital’s Microfinance Universe profile: SKS Microfinance
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS…

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

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