I would like to appreciate The Hindu for bringing to light the link between borrower-suicides and field practices of SKS Microfinance (“Small loans add up to lethal debts,” Feb. 26). But many microfinance institutions (MFIs) have focussed on community development and social initiatives while delivering access to financial services in a fair and responsible manner. MFIs have taken many social initiatives — such as running schools and tuition centres for borrowers' children, providing vocational training for income generation activities and conducting health camps for borrowers. The article seems to generalise the faulty practices of SKS Microfinance for the entire microfinance sector. While the microfinance sector, just as any other, might have its share of bad apples, it is unfair to blame the sector as well as borrowers based on the actions of one organisation. The SKS scenario will not recur because the RBI has notified clear guidelines for the sector. Microfinance may expect to see stable growth that benefits all stakeholders.
- M.B. Nirmal, Founder, ExNoRa International, Chennai (HBL)
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