Microfinance concerns in India

I love microfinance. I think it's an amazingly genius idea and i love hearing about the success stories. But sometimes there are stories that aren't successful. Check out this article to learn more about the problems microfinance is having in India.

Regulators Crack Down on Microfinance Industry in India

New rules aimed at regulating India's microfinance industry, whose spectacular growth and near collapse strongly echo the U.S. subprime mortgage crisis, are set to take effect April 1.  India's government has agreed to infuse $22 million to make capital available to smaller microlenders, along with the new central bank rules. The move adds national regulations to local ones enacted earlier in Andhra Pradesh, including interest rate caps and closer scrutiny of credit limits and borrowers' incomes.