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Microfinance under stress


Microfinance institutions (MFIs) that are for profits have grown spectacularly in recent months and are in the news for the wrong reasons. The accusation of 'coercive practices' to recover the loans has been laid at the doors of some. With an estimated aggregate outstandings of about Rs.22,500 crore spread over nearly 2.67 crore active borrowers, microfinance can by no means be viewed as some fringe financial activity.




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