NGO based microfinance institutions to form Association in AP

Thursday, October 28, 2010, 17:47
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Microfinance Focus, Oct 28, 2010: More than 50 NGO based microfinance institutions in the Indian state of Andhra Pradesh will be meeting on October 31^st with an agenda of creating an association of NGO-MFIs in the state, Microfinance Focus has learnt.

The need to create such an association has emerged from the growing resentment amongst NGO-MFIs over being clubbed together with profiteering microfinance institutions who are reportedly indulged in unhealthy practices.

As a consequence of the microfinance ordinance which the government issued in Andhra Pradesh, the operations of these NGO-MFIs have been affected and they feel that they are being made to suffer because of a handful of MFIs.

There is a wide held belief that Sa-Dhan, the nodal association for Indian microfinance which has 234 members, is not effectively representing the concerns of NGO based microfinance institutions, according to industry sources. Moreover, the existing Indian microfinance network, MFIN (Microfinance Institutions Network) largely represents NBFC-MFIs (Non-Banking Financial Companies) with no representation of NGO-MFIs.

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Tags: MFIN, NGO-MFIs, sa-dhan, The Andhra Pradesh Microfinance Institutions Ordinance 2010

2 Comments on “NGO based microfinance institutions to form Association in AP”

Mburu Antony wrote on 29 October, 2010, 11:23
I largely agree with NGO based microfinance institutions to form Association in AP. It would help to know and be associated with genuine organizations but I do also feel that this should not be limited only to NGO based microfinance but also include other player like the software companies since my experience has shown me that the support, training and reliability of the software these organisations use do indeed factor in their performance hence growth and effectiveness of their business plans.
Mohanraam Kumar wrote on 29 October, 2010, 13:11
I, Mohanraam Kumar, CEO, YUVASAKTHI NGO, concentrating in Micro Credit with the support of SBI, RMK to our SHG. We would like to know more about your Association & if it is fruitful we’ll be interested to join with your Association.

Yours Sincerely,

J. Mohanraam Kumar
CEO, Yuvasakthi(VO),
Toor Niwas, RGT Road,
Port Blari-744101,
A & N Islands.
Cell: 9933290269