This note talks about competition in the Indian microfinance market. Historically, the MFIs in India enjoyed the low competition period which allowed them to focus on the methodology and management systems necessary to reach scale and sustainability. The focus note draws lessons from Bangladesh, Bolivia and Uganda for the future of microfinance in India. It reviews the issues related to over indebtedness, demanding/discerning clients, niche market and price based differentiation and the implications on each of the factors on Indian MFIs.
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