bangalore poor

How effective are micro-finance institutions in helping the poor in Bengaluru deal with their crises? Do self help groups really help? What is the downside?

Poor in Bengaluru trapped in the vicious circle of money-lending are unable to get bank loans. Structurally the poor are designed to be left out of the banking system, as banks cannot determine either their ability or intent to repay loans.

While most of us don’t understand why poorest of the poor in the society remain so for decades, here is a reality check that reveals the darker side of the story: an atrocious circle of borrowing, spending and borrowing again, to make ends meet, and remaining poor forever.