Economic Progress

Move over, microfinance. Here’s why the future of development is in nanofinance

Tairabi Pathan, 40, who took a loan of rupees 10,000 ($220) from a micro finance company to start her own business, arranges her goods for sale at the side of a road in a slum area in Mumbai October 26, 2010. India's microfinance industry, which surged to prominence when George Soros-backed SKS Microfinance raised $358 million in an IPO, faces a regulatory clampdown that could erode profits and hurt growth. Reports of dozens of suicides by poor borrowers in the southern state of Andhra Pradesh, the hub of India's microfinance sector, prompted the state to enact an rules against aggressive recovery practices by lenders who make loans that average about $150 to poor customers at interest rates that can top 30 percent. Picture taken October 26, 2010.       To match analysis INDIA-MICROFINANCE/      REUTERS/Danish Siddiqui (INDIA - Tags: SOCIETY BUSINESS) - GM1E6AS11VZ01

Image: REUTERS/Danish Siddiqui

Ron Bills
Chief Executive Officer and Chairman of the Board, Envirofit
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