MFIs beat Banks here

The borrowers do the good for MFIs. MFI borrowers tend to bounce back more quickly than commercial bank borrowers. Ultimate losses for MFIs thus tend to be more limited than for commercial banks. This is primarily due to the fact that MFI borrowers tend to be micro entrepreneurs or small family businesses operating in the informal sector, which are more flexible
in changing the profile of their economic activity. In addition, as consumers adjust to lower spending levels, there is often an increase in demand for these informal business services and products.

Well, an ongoing discussion at solution exchange micro-finance community mentioned an article (can be accessed here) mentioned the above fact. The fact regarding customers adjusting spending levels and increasing demands for small business products amazes me. This means, the guy who used to drink coffee at CCD has now shifted to the road-shop across the CCD now. Looks logical!!