to poor people and attempt to fill the void left between the mainstream commercial banks and money lenders. Over the last few years NBFC-MFIs have emerged as a fast growing enablers in providing the financial services to the poor people by providing capital inputs to poor which generates self-employment, and thereby promotes inclusive growth.
The credit provided by the NBFCs – MFIs10 increased from just Rs. 105 billion as on March 2010 to Rs.151 billion as on March 2011 and declined to Rs.117billion on account of the ordinance passed by the AP Government that stopped all MFIs from collecting payments by force or even disbursing loans by the MFIs.