Microfinance Pioneer Yunus Criticises Indian Lenders
Monday, December 13, 2010
DHAKA – Bangladeshi microfinance pioneer Muhammad Yunus on Sunday attacked companies for “misusing and abusing” his original concept of helping poor people via small loans, after a backlash against profit-making lenders.
Yunus admitted the reputation of micro-credit had been tarnished due to Indian commercial companies that charge high interest rates and use allegedly heavy-handed tactics to collect repayments.
India’s biggest lender to the poor, SKS Microfinance, has been in the spotlight following a series of suicides among debt-laden villagers in Andhra Pradesh state, where authorities have reacted by ordering a crackdown on microfinanciers.