The Microfinance Contagion Scenario

Harvard Business Review

So far, the Andhra Pradesh (AP) microfinance crisis has largely been viewed as a local issue, with relatively little impact beyond AP or India's borders. Other microfinance crises, in Bolivia, Nicaragua, Nigeria, and Bosnia, have not spread beyond the borders of a particular country. In other words, at current repayments rates, any MFI with more than 12% of its portfolio in AP is at risk of insolvency.

How One Startup Developed a Sales Model That Works in Emerging Markets

Harvard Business

Experiment #5: Microfinance Institutions. In emerging markets, microfinance has been a key economic engine in helping low-income households fund businesses and other important purchases in daily life. Prem, a BioLite Burner on our West India team, gives a HomeStove demonstration to a group of customers at a microfinance branch in Rajasthan.