India's Banks Suports Micro Finance Lenders

India's banking sector has lent its support to microfinance lenders after weeks of turmoil and confusion. The big banks like State Bank of India, Standard Chartered and Citi all have agreed to continue lending to micro enterprises.

The industry billions of dollars on the development of a mass standard. support banks weighed in the balance, as lenders became involved in controversy in the southern state of Andhra Pradesh.

About four weeks ago, authorities have begun to criticize microfinance firms for a number of suicides in rural villages. They claim that the suicides were caused by the abuse of corporations, heavy-handed methods of debt recovery and high interest rates.

Lenders deny the charges. Microfinance is designed to provide small loans to poor borrowers economic, often in rural areas have difficulty accessing funds from banks.

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