MFIs have a limited role for the poorest lot: Mimo Finance

“Like most of our counterparts,we provide our services at the doorstep of our clients who are primarily women. Since most of the women folk in our areas of operation,normally do not venture out of their homes,it makes good sense in providing the services at their door step,” says P Murali Srinivas,chief operating officer and co-promoter of Mimo Finance.

Talking about the challenges for the micro-finance businesses in the wake of unfortunate reports of suicides from Andhra Pradesh,Murali says,“Lack of entry barriers to the MFI industry and the lack of parameters,has let the industry fall prey to some moneylenders who are still using those traditional and coercive methods to retrieve loans in the garb of being MFIs,which is throwing some challenges for the industry”.

“We at our end are trying to introduce the customer redressal system to mitigate any pitfalls,at any level of our service delivery,” Murali adds.

Calling MFIs,as partners in growth,Manab Chakraborty says that MFIs can be effective partners in the growth process of the country by making the disadvantaged sections of the society,like women,resourceful. “For growth capital is required,which the MFIs are providing to the lower strata of the society. But,as far as the poorest lot is considered MFIs are helpless,” he said.