The New York Times writes in this piece about the heightened scrutiny effecting the microfinance industry in India.

 

From original article:

 

"Responding to public anger over abuses in the microcredit industry - and growing reports of suicides among people unable to pay mounting debts - legislators in the state of Andhra Pradesh last month passed a stringent new law restricting how the companies can lend and collect money.

"Even as the new legislation was being passed, local leaders urged people to renege on their loans, and repayments on nearly $2 billion in loans in the state have virtually ceased. Lenders say that less than 10 percent of borrowers have made payments in the past couple of weeks."

 

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