Non-Bank Financial Institutions Regulatory Authority (NBFIRA) started regulating micro lenders
after commencement of Micro lending regulations in 2012.
But the unbanked Filipinos continue to patronize these micro lenders
because it is easy, quick and informal.
It enabled micro lenders
to avoid financial loss by identifying clients' repayment probability before issuing a loan.
The latest sector report by the Central Bank shows the bad loan book for micro lenders
grew to Sh9.91 billion during the year from Sh7.37 billion, meaning customers defaulted 5.8 per cent of Sh43.05 billion, the total loans issued during the year.
Each of the new micro lenders
received a licence and is being supervised by the OJK.
The program will be hosted by Cynthia Nevels, founder of ThinkCrowdFund.com, a firm that partners with crowdfunding portals, crowdlending portals, banks, micro lenders
and community based organizations to empower entrepreneurs and business owners to fill their funding gap.
Grameen Bank has shown the way to the micro lenders
to successfully operate in a male dominated society.
While micro lenders
in India hardly received any funding to boost their business needs, the trend is changing as local corporations and institutional investors are looking to invest in the firms after they were issued licenses by the Indian central bank.
Kim Vada, director general of banking supervision at the National Bank of Cambodia, welcomed the new entrant to the microfinance market, stressing this vital role micro lenders
play in rural areas.
The Reserve Bank of India has shortlisted 10 micro lenders
to set up small banks to advance loans primarily to the unbanked, small businesses and farmers, micro and small industries and unorganized sector entities which do not have access to finance from the larger banks.
Opening the door to micro lenders
focused on rural and semi-urban areas is widely viewed as a move to encourage financial inclusion of a large unbanked segment while mobilising rural savings and making them available for local investments.