For-profit MFIs are loan-sharks, they need regulation: Yunus

Written by: Pti
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Mumbai, Feb 20 (PTI) Muhammad Yunus, the BangladeshiNobel laureate who brought revolutionary changes in the micro-credit area in his country, has opined that the best servicethe profit-oriented MFIs like SKS could do to the sector is tostop calling themselves as micro-financiers as they arenothing but "loan-sharks".

"If you want to commercialise, please choose adifferent name, and not microfinanciers. Real microfinanciersare not commercially minded. Grameen Bank and all myenterprises are not commercial entities but socialbusinesses," the world famous social economist told PTI on thesidelines of CSR meet organised by Wockhard Foundation herelast evening.

Yunus further pointed out that "the ultimate objectiveof MFIs is to ensure financial inclusion and not makingprofit. So long as they work towards this objective, they aremicrofinance companies and when they start looking at profitthey become loan-sharks or commercial entities."

When specifically asked for his comments on thecontroversy that SKS Microfinance brought in, he said "I don''twant to name anyone, but what is happening at SKS is far fromwhat is desired."

Yunus wondered how SKS promoter Vikram Akula couldchange the way he did. He recalled the early years of Akulaand said, "He was a nice person when he launched an NGO aftervisiting many of my social businesses in Bangladesh. Heinteracted with me many a time in the past. But what happenedto him now, I don''t understand." (more) PTI BEN RSY

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