Vikram Akula - SKS Microfinance

[mdkumarz]

But Indian poor have a leech-like moneylender on the other side charging 10% per month interest compared to 30% from MFI(Micro finance institutions). So, I think MFIs are here to stay.

[ahvanam]

This man loans poor people for 30% interest and he is talking about humanity, poverty !!!  Indian poor are not new to this kind of men but limited by region known as parasites .........I am surprised this man got awards too!

[yupyupnopenope]

@ahvanam BOP pie is further segmented into discrete classes. As he is not using a NGO approach (which has been proved lot less effective than social entrepreneur for-profit approach, example - Africa for last 50 years), he must have to setup differential pricing model with variable interest rates for different consumers based on risk vs reward balance, skill, knowledge and motivation. Based on these, interest rates can vary and just taking example of few 30% or 40% shouldn't be generalized.

[yupyupnopenope]

@ahvanam Plus I know the professors with which he did his PhD at University of Chicago, All brilliant people and noble laureates. Key thing I like about his mission style is, he has identified the solution to the problem of scaling in a diverse market and that is "It has to stay localized" So individuals' situation, access to resources and viability of the idea decides interest rate. By not putting it up as a charity, he puts a +ve spin on it. He wouldn't been able to scale without +ve response.