Yunus and Indian MFIs

Indian MFIs have deviated from idea of micro credit: Muhammad Yunus - The Economic Times: "MUMBAI: Microfinance institutions in India have deviated from the idea of micro credit, Professor Muhammad Yunus, chairman of Yunus Centre and pioneer of micro-credit, has said.

"They (MFIs) moved away from the idea of micro credit. That has created all the problems," said Yunus, in a media brefing in Mumbai. "MFIs based in Andhra Pradesh have drifted from their mission.

They need to extract and reintroduce themselves to do business. The problem was created because they called themselves micro credit and deviated from the very plan of micro credit," he said.

The economist from Bangladesh, who created the innovative programme of providing small loans to poor people, especially women, to help eradicate poverty, said that listing of MFIs on the bourses was a wrong move.

"This is a business done with poor people. So you have to do it carefully. Some people found an opportunity in it and went to benefit themselves. When you want to benefit yourself, sky becomes the limit creating the whole problem," he said. "

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