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Vikrum Akulas View

As microenterprises having high

returns on investments, soborrowers are willing to pay high

interest rates

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Vikrum Akulas view

High Returns On Investment

Microenterprises uses family labor

They have low infrastructure cost

They are in the informal sector

They have small percentage of

financial capital in overall input

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Vikrum Akulas View

High Interest Rates

Direct financial costs

Transaction costs

Officers operate in remotevillages

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Vikrum Akulas View

As microenterprises having high

returns on investments, soborrowers are willing to pay high

interest rates

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Chunk Waterfields View

Huge Profits

Microfinance is moving from Non-profit to For-profit world

Constructive Microfinance is moving

toward Exploitive

Money Lending

Now institutions having different

Values and goals

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Chunk Waterfields View

Microfinancing is introduced to boost

the poor community out of poverty,

not to earn huge profits

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Recommendations By Authors

Vikrum Akula recommends that coppingwith interest rate is not the best way.

Instead we should stimulatecompetition

Chunk Waterfield recommends that weshould need to work in collaboration to

develop standards and to make one

another accountable to these

standards

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Microfinance Boosts The

Poor

Published: Businessweek.com on

December 3rd, 2010

Authors: Vikrum Akula, Chunk Waterfield

Presented By:Attique Alam Wazir

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General Knowledge

Minimum capital requirements for MFB:

1. Nationwide MFBs: 1000 million License: established under2. Provincewide MFBs: 500 million section 13 of MFI Ordinance

3. Regionwide MFBs: 400 million 2001 is entrusted to the State

4. Districtwide MFBs: 300 million Bank of Pakistan.

Application process fee is one million

MFBs in Pakistan: (09)1. NRSP microfinance bank ADB lauds Khushali bank for income

2. The first microfinance bank generation: survey conducted by ADB.

3. Khushali bank limited Research fellow Heather Montgomery

4. Karakuram bank summarized key findings that study shows

5. Network microfinance bank positive impact of Khushali banks operations6. Pak-Oman microfinance bank on income generation, empowerment, health

7. Rozgar microfinance bank and education.

8. Tameer microfinance bank Published in Daily Times on 29th Sep, 2005

9. Kashf microfinance bank