Microfinance News Synopsis: Maoists, mafia, MLAs and moneylenders: they are external, extortionist threats

Microfinance Focus, July 17, 2010: Microfinance News Synopsis brings a compilation of industry headlines broadcasted by other news media from across the world.

Maoists, mafia, MLAs and moneylenders: they are external, extortionist threats: Vikram Akula, chairman of SKS Microfinance Ltd, is arguably the most controversial figure in India’s nascent microfinance industry. As SKS’ initial public offering (IPO) approaches, the first among microfinance companies, Akula spoke in an interview about his unabashed support for a commercial approach to the business of lending to the poor and the challenges faced. Edited excerpts: Your IPO has stirred a hornet’s nest. Will the advent of large-scale private capital into microfinance compromise its goals? We believe that the commercial approach to microfinance is the best way to reach out to poor people. Muhammad Yunus (Nobel Peace Prize winner in 2006) believes that you should take the approach of a social business, meaning no profit no loss [LiveMint]

Trust offers loans to entrepreneurs: INTEREST-FREE loans to entrepreneurs who have been turned down by banks are being offered by a charitable trust. The Dún Laoghaire-Rathdown Trust Fund this week began to accept applications for loans of between €500 and €5,000 for those with a well-researched business idea. Those with ideas for new or existing businesses in the Dún Laoghaire-Rathdown area in Co Dublin can apply for a share of the €50,000 fund. Unemployed people, foreign nationals, people from a disadvantaged background or people with disabilities are particularly encouraged by the trust to apply for microfinance. “Limited access to finance is one of the main barriers preventing people from disadvantaged backgrounds from setting up their own business,” Michael O’Connor of Siemens and chairman of the trust fund board said in a statement.“Banks and government agencies simply aren’t in a position to help every business get off the ground,” Mr O’Connor added [Irish Times]

© 2010, Microfinance News. All rights reserved. 2008-09