write about the microfinance Organisation in AP
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The Microfinance Institutions (MFI) in Andhra Pradesh are being driven away by the provisions of the APMFI Act and the developments that followed, according to the industry. While the largest and only listed MFI has shifted its base to Mumbai, others like Basix, Spandana, Share and Asmitha are spreading to other States in India and abroad.
The MFIs in the State clocked losses of over Rs. 6,500 crore in Andhra Pradesh following the APMFI Act, 2011 which is intended to control high interest rates, coercive collections and illegal insurance practices by the MFIs. Within a year, the operations of the MFIs in the State have come down to less than 10% besides reduction of over 30,000 staff. Companies that bore the brunt include the first listed MFI SKS and others like Share, Basix and Spandana.
“It’s ironic that we are unwanted in Andhra Pradesh but welcomed all the way from Asia Pacific to sub-Saharan Africa. Basix is working with nine countries around the world starting from Papua New Guinea to East Timor on eastern side to Cameroon, Mozambique, Tanzania and Ethiopia in Africa,” said Vijay Mahajan, founder chairman, Basix Microfinance.
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The MFIs in the State clocked losses of over Rs. 6,500 crore in Andhra Pradesh following the APMFI Act, 2011 which is intended to control high interest rates, coercive collections and illegal insurance practices by the MFIs. Within a year, the operations of the MFIs in the State have come down to less than 10% besides reduction of over 30,000 staff. Companies that bore the brunt include the first listed MFI SKS and others like Share, Basix and Spandana.
“It’s ironic that we are unwanted in Andhra Pradesh but welcomed all the way from Asia Pacific to sub-Saharan Africa. Basix is working with nine countries around the world starting from Papua New Guinea to East Timor on eastern side to Cameroon, Mozambique, Tanzania and Ethiopia in Africa,” said Vijay Mahajan, founder chairman, Basix Microfinance.
Thanks
Please mark as brilliant answer
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