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Submitted by Bhalchander Vishwanath on
Excellent post!! I think your post brings a great deal of reality to the microfinance world. The buzz today is about for-profit microfinance. However as you rightly point out, for-profit microfinance does not necessarily reach the poorest of the poor. NGO MFIs play an important role in reaching out to the poorest. However NGO MFIs cannot take 'investment grade equity' which gives returns to investors. Thus we need a new kind of equity which does not expect financial returns or we need to use instruments like guarantees. I hope the world bank will mobilize support for these kinds of financial instruments so that the poorest clients enjoy the same level of opportunities. If not we would not have truly tapped into the power of microfinance. Bhalchander