Themicroloanfoundation's Blog


Crackdown on Coercive MFIs in India
May 29, 2010, 10:51 am
Filed under: Uncategorized

Full story here

A growing number of MFIs in Andhra Pradesh have been charged with using coercive tactics in recovering loans including but not limited to “instances of recovery agents pushing women into flesh trade, forcing them to stand in hot sun for about four hours and seizing their ration and aarogyasri cards.”

Considering that these clients are often poached from self-help groups, Rotating Savings and Credit Organisations (ROSCAs) that bear a resemblance to MicroLoan groups, this is frightening, to say the least. Unfortunately, coercion and corruption is found everywhere and by no means is Microfinance the exception. Authorities really need to take an example from Andhra Pradesh and ensure that criminals don’t pollute the Microfinance sector.

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