Summaries of Studies Conducted by the Centre for Microfinance Research (April 2011-December 2011)

During the period April 2011 to December 2011 the Main Centre of CMR and its four Sub-Centres have brought out 6 study reports. The major findings of these studies are as follows :

1. Rural Indebtedness and Practices of mFIs in AP

Andhra Pradesh has around 49,49,393 number of mFI clients with a loan outstanding of Rs. 3,56,528 lakhs which is highest as compared to other states in India. Andhra Pradesh is one of the leading states in terms of SHG and mFI growth, with the largest number mFIs based in the state. There have been concerns that this rapid growth has caused intense competition amongst mFIs competing for both clients and staff. Clients with multiple-borrowings from various sources are in some cases over-indebted. Many microfinance commercial organisations have entered the Rural Credit Market in search of profit and are competing to lend to the poor. In the process of giving loan to the poor the mFIs started chasing targets and numbers.