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FAQs
Microfinance - Guide to Microfinance loan in India? ›
NBFC-MFIs are prohibited from collecting a security deposit/ margin from the borrower. The effective rate of interest which is charged by the NBFC-MFI will be displayed in all its offices, its website, and the literature issued by the entity. NBFC-MFIs are not permitted to collect a penalty on a delayed payment.
What are the rules for microfinance in India? ›NBFC-MFIs are prohibited from collecting a security deposit/ margin from the borrower. The effective rate of interest which is charged by the NBFC-MFI will be displayed in all its offices, its website, and the literature issued by the entity. NBFC-MFIs are not permitted to collect a penalty on a delayed payment.
What is a microfinance loan in India? ›Microfinance is a banking service provided to low-income individuals or groups who otherwise would have no other access to financial services. Microfinance allows people to take on reasonable small business loans safely, in a manner that is consistent with ethical lending practices.
What is the maximum loan amount for MFI in India? ›The last time criteria relating to the annual household income limit for giving micro loans to individual borrowers was revised was in 2022, when it was upped from ₹1.25 lakh in rural areas and ₹2 lakh in urban- and semi-urban areas to a uniform ₹3 lakh.
Which is the No 1 microfinance company in India? ›Cashpor Micro Credit
Incorporated in the year 2002, Cashpor Microcredit is one of the top financial institutions in the country that provides micro credit. This company mainly operates in the most backward districts of Uttar Pradhesh, Bihar, Chattisgarh, Madhya Pradesh, and Jharkhand.
ELIGIBILITY CRITERIA:
➢ Low income households having annual household income up to Rs. 3.00 Lakhs. ➢ Repayment of monthly loan obligations of a household as a percentage of the monthly household income, should not exceed 50% of the monthly household income.
RBI has made it mandatory for lenders to display the minimum, maximum and average interest rates charged on microfinance loans in all their offices, in the literature (information booklets/ pamphlets) issued by them and details on their website.