> Posted by Center Staff
Beth Rhyne’s latest contribution to the Huffington Post examines a range of “safe” practices that can make microfinance healthy for MFIs and clients alike.
Like sex, microfinance can be safe if practiced responsibly. Recently, however, we’ve seen that not all participants in the microfinance industry are practicing safe microfinance. As happens with that other risky activity, the players in microfinance face temptations that lure them away from healthy long term relationships. One need look no farther than Andhra Pradesh, India, where the temptation for lenders to grow very fast in order to win market share, prestige and profits caused them to woo many clients into excessive debt — with predictably bad consequences for both clients and lenders.
To read the rest of this piece and find out about other microfinance articles by Beth Rhyne on the Huffington Post, click here.