Build your professional network on facebook via our app Go to app
 
 
 
Started by : Sunil Vij, Portfolio Manager, Blackstone Group   12 04 2008 14:55:02 +0000
Industry : Hedge Funds/VCs/Private EquityFunctional Area : Growth(Strategy & Execution)
Activity:  2 views;  last activity : 07 06 2010 20:18:09 +0000

The global credit crunch has led to a significant drop in fund flow to the microfinance sector. Banks, which are required to provide 32-40 per cent of their loans to the priority sector (which includes rural credit), are the largest providers of funds to MFIs. They lend to microfinanciers, who then on lend to the poor at a higher rate. But with banks' lending rates rising more than 200 basis points over the last quarter, microfinanciers are finding it tough to get enough funds to sustain business.  So how long this credit crunch affect the microfinance industry!!!!

 
Share
 
 
  Rate : 
 
 
 
 
  0
 
 
 
 
 
1
1 Sanctioned Funds

Sanctioned Funds

idea posted by Sunil Vij Portfolio Manager, Blackstone Group
I could say that MFIs are unable to use even sanctioned funds. According to sector trackers, MFI sector may have trouble raising loans till January as banks will try to complete their priority sector lending targets more aggressively only in the last quarter of the fiscal.
0
No supporting Arguments for this idea
Add your argument:

Add your Idea
Idea* : 
Add your argument:
edit in rich text ...
Could not find any idea interesting in: "How far will the credit crunch affect the microfinance industry?" ? Click here to add a new idea...

Found the idea contest "How far will the credit crunch affect the microfinance industry?"  interesting ?  Click here to refer to your connections and communities
Leading Recruitment Firm
Arrkay is a recruitment consulting firm providing one stop solution for all kinds of permanent and temporary staffing requirements. The industries in focus are IT, Aerospace, Engineering, Semiconductors, Manufacturing and KPO. We are part of an aggressively growing business group Arrkay......
Viewers also viewed
It is said that India has a wealth of amazing places that is to be seen and appreciated and...
 
501 referals 29 votes, 8713 views
All other industry seems to be in recession other than Telecom Industry. Do you agree that...
 
2 referals 54 arguments, 3674 views
Banks and other lending institutions must constantly balance risks and rewards. Too high a price...
 
11 referals 4 comments, 4729 views
more...  
Recent Knowledge (3)
we all know the perils of talking on cell phones while driving. besides being hazourdous to...
 
290 referals 2 votes, 36 views
more...  
More From Author
EBay to sell Skype to private investors: How it will impact skype?
The global credit crunch has led to a significant drop in fund flow to the microfinance sector. Banks, which are required to provide 32-40 per cent of their loans to the priority sector (which includes rural credit), are the largest providers of...
The volatility continues...and it pays to be a contrariness. Indian equities continued their downfall,  Both Indian Government and Reserve Bank of India are taking extraordinary measures to tackle the liquidity crisis in the banking system Are...
more...