Well it is true that schools

Nitant Joshi — Thu, 22 Feb 2007 04:12:19 -0500

Well it is true that schools need to offer financial education as a part of its course.But the problem here(India),people who try to pursue othe professions other than engineering or Medicine are considered intellectually inferior.Thats the reason why subjects such as finance should be added so that the parents can be aware about the opportunities elsewhere. Also i agree that the "sponsers should recognize that is not a marketing tool or a branding initiative. It is an investment in the impressionable minds of future clients".Its a win-win situation for both.

MFI Sponsored Financial Education

Nitin Rao — Wed, 21 Feb 2007 10:55:39 -0500

Most schools in developing economies do not offer any financial education. Those who do, offer it as an optional course. Those who do, like India's CBSE offer an overview of financial markets and share capital.

Last year alone, according to Business Today, more than 15 million Indians borrowed about $1.45 billion in micro loans. These numbers will only grow. It occurs to me that even as a micro loan revolution is sweeping emerging markets and indeed, the world, microfinance institutions (MFIs) could be losing out on a massive opportunity.

MFIs, as an industry, could sponsor a course on financial education in schools, particularly in rural areas. I believe that many Indians still have a wrong or misguided notion of credit. Perhaps we are influenced in historically believing that borrowing money on a loan is associated with bad circumstance. Likewise, selling an asset is seen as the seller being in dire need. In short, the concept of entrepreneurial capital is alien to us. I recognize that some of this has changed in recent years.

Educating people on the positives of entrepreneurial capital should start at the school level. A more sound understanding of capital and its costs will make these students more employable and less vulnerable to exploitation.

Microfinance organizations have seen scorching growth rates, even in excess of 200%. With such growth, investing in this form of education could prove critical to sustaining the extremely low rates of default.

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Well it is true that schools

MFI Sponsored Financial Education