Never miss a story! Stay connected and informed with Mint. Download our App Now!! It'll just take a moment. Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image. You are now subscribed to our newsletters. Premium Premium Taken a loan? Banks asked to mention exact repayment du Premium Premium RBI tells banks to specify exact repayment due dates in Premium Premium Companies order record number of robots amid labour sho Things to Know Be Premium Future told to halt asset sale process.
Subscribe to Mint Newsletters. Internet Not Available. Whether the net amount of loan received from lending bank i. NBFC-MFIs are not permitted to exclude the amount of cash collateral from total borrowings to arrive at the denominator for computing cost of funds.
Whether the processing fees both incoming i. Processing charges need not be included in the margin cap. If yes, is there any limit imposed by RBI on it? Yes, an NBFC-MFI can charge a differential rate of interest to its customers but the variance for individual loans between the minimum and maximum interest rate cannot exceed 4 per cent. A customer needs to know that there are only three components in the pricing of a loan viz. RBI has made it mandatory for the NBFC-MFI to prominently display in all its offices and in the literature issued by it and on its website, the effective rate of interest being charged by it.
While the quality and coverage of data with CICs will take some time to become robust, the NBFC-MFIs may rely on self certification from the borrowers and their own enquiries on these aspects as well as the annual household income.
There must be a minimum period of moratorium between the grant of the loan and the due date of the repayment of the first instalment. The moratorium shall not be less than the frequency of repayment. She showed the loan officer the bruises on her arms and legs and begged him to refuse her husband another loan. Instead, the loan officer suggested her husband physically reprimand her. If she leaves her husband she fears exclusion by her community, arrest and even starvation.
Many of the loan officers interviewed reported being ashamed of, or even depressed by, the ways in which they treat clients, explaining their behaviour in terms of fearing their branch managers. One female loan officer reported staying in the house of a late-paying client all night when she was pregnant in a bid to force the woman to hand over the money, afraid as she was of returning to the office empty-handed.
During the night her waters broke and the client had to help her to hospital. There is little doubt that the founders of these organisations were genuinely seeking to help poor and low-income people improve their economic and social prospects. Over time, however, organisational goals growing bigger, having higher rates of repayment and higher levels of profitability, winning international awards and closer links with mainstream finance have displaced the original mission.
In addition, the expansion of the microfinance industry since has been heavily dependent on the involvement of commercial banks , opening the industry to the corrupting influence of mainstream finance. Access to finance is crucial for the microfinance market to develop, while for mainstream banks a new, relatively untapped market experiencing 15 years of uninterrupted expansion is appealing.
In theory, the microfinance industry could expand until it reaches an estimated one billion un-banked poor households. One extreme response, as demonstrated when the Indian suicides came to light, would be to try to close formal microfinance down.
But this would be unwise for two reasons.
0コメント