@Tribune India: Andra Pradesh (AP) has tabled a bill to regulate the operations of the microfinance institutions (MFI) in the state. They are primarily looking at addressing the issue of high interest rates being charged by MFIs as well as the process of forceful loan recovery adopted by these companies. This bill will replace the ordinance passed in October, 2010.
Companies in this space are expected to be hit strongly as AP is the largest market for these players accounting for a third of their of the total lending in the country with over 6.5 mn borrowers.