> Posted by Kelley Mesa
In her latest Huffington Post article, Elisabeth Rhyne discusses overindebtedness in microfinance…
When does a borrower cross the line from leveraged into losing it? Every borrower wants to avoid sliding into debt stress. Lenders, too, have a stake in ensuring that their clients cope successfully with their debt burdens.
If no one wants debt stress, why is there so much of it around?
This is an emerging challenge for the microfinance institutions around the world that have finally succeeded in providing access to credit to hundreds of millions of previously excluded low income people. Some of the top microfinance markets in the world – in countries as diverse as Nicaragua, Morocco and Bangladesh – are becoming saturated. Since their clients are among the world’s most vulnerable people, microlenders have a special responsibility to avoid over-lending. This brings up a new problem for microlenders: how and when to put on the brakes. Read more >