NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, January 28, 2014

Just two years ago some of India’s microfinance companies–which give tiny loans to the poor–were struggling to stay afloat as they grappled with bad loans, a lack of funding and allegations their lending practices were pushing some borrowers to suicide.

The Reserve Bank of India stepped up in 2011 to help avoid an implosion in the industry and implemented new rules, bringing microloan companies under its purview for the first time.