Orissa to form panel on microfinance lending
The Orissa government will form a committee to examine issues related to lending by microfinance companies to poor borrowers, a senior government official said on Friday.
“We are receiving complaints that some microfinance institutions are charging 30% to 40% interest,” said R.K. Mishra, director of institutional finance in the Orissa government.
“Some are even charging more though they are availing credit from banks at a much lower rate,” Mishra told Reuters. “This is unacceptable. We want to prevent this exploitation.”
Shares in SKS Microfinance fell as much as 20% on Thursday after it said a clampdown on business practices by lenders to the poor in Andhra Pradesh threatened to squeeze profits and revenue.
Source:- Moneycontrol
