Financial resources of the Microfinance sector: Securitisation deals -- Issues and challenges Interview with the MFI s Grameen Koota and Equitas

摘要

Microfinance institutions (MFIs) cater to the large number of individuals who are denied access to the banking sector. The early stage microfinance institutions (MFIs) were nonprofit institutions. However, to meet the increased asset size, MFIs were projected as a profitable investment opportunity to public and private equity markets. To meet the expectations of equity investors MFIs started charging very high interest rates which left the rural people burdened with debt. An alternate way of raising resources at moderate cost is bilateral assignment and securitisation of microfinance loans.