The recent articles in The Wall Street Journal, “Backlash in microlending: three agents in India are arrested for harassing borrowers” and “India’s major crisis in microlending: loans involving tiny amounts of money were a good idea, but the explosion of interest backfires,” illustrate that in the microfinance sector it all comes down to priorities: does the organization prioritize shareholders’ return or clients’ success?
Payday lenders, loan sharks, pawn shops and some financial institutions are also in the “microfinance industry,” but they are making their own interests paramount, and in the process, overlooking the clients they serve. This is causing a backlash among government authorities and actually harming some clients.
At HOPE International, we believe these recent articles expose an ugly underside of the microfinance movement. While we actively support creating profitable microfinance institutions, we believe a gulf is growing between a client-focused approach to microfinance and an approach that focuses on shareholder return rather than life change. Continue Reading…
I had the opportunity to interview Pasteur Julien from Centre Chrétienne Néhémie (Nehemiah Christian Center Church) while a reimbursement meeting was taking place in his church.
