Where every minute is a risk!!!
When we talk of microfinancial services it is always credit and savings. There is no doubt that strong demand for micro finance services in our country exist among the poor. There are around 150 million poor households present in our country whose average credit requirement is around Rs 20000. So we can see that a potential demand of Rs 300,000 crores ($ 60 billion) exist, out of which only 10% i.e. $6 billion have been covered by micro-credit agencies. While we can clearly observe the potential for microfinancial services across our country, reality on ground is that MFIs instead of venturing into unexplored market of actual poor and needy in the remote corners of the country, they are busy oversaturating an already saturated marketspace leading to a phenomena called the MF bubble (more or less similar to the housing bubble of US) due to overlending and multiple lending to the not so poor and needful. AP has become hub of Microfinance with every second MFI present there. Customers hav