Monday, 7 February 2011

Microfinance industry - the case of Pakistan

The article Pakistan: a protected microfinance borrower? written by Arsala Kidwai from the International Development Law Organization - IDLO provides an insight of the legislation enforced to regulate MFIs activities in the country. The paper monitors and evaluates laws and regulations in place in Pakistan against a number of indicators (listed below) to state rights and warranties of microfinance customers.

  • Transparency and disclosure in lending practices and initiatives to improve financial literacy.
  • Types of collaterals collected and procedures of enforcement.
  • Initiatives to prevent overindebtedness and limit multiple lending (like credit information  databases)
  • R ecovery loans mechanisms
  • Availability and accessibility of redress mechanisms to the consumer.

International Development Law Organization

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