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

A lot had to take place for this all to happen: I had a problem but knew a solution existed; I had access to information on my options; I had a physical destination to see my options in person; a trained employee was available to provide advice and recommendations; and I had a means of financing to bring this appliance into my life almost immediately. Experiment #5: Microfinance Institutions. Customers show up regularly to take out loans, arrange payments, and track their finances.