[Solved] Who Can Apply Loan from Microfinance Institutions / Bank?
What is Microfinance eligibility criteria? Who can borrow loan from Mircofinance banks or Micro-Finance Institute (MFI)?
There are multiple names for Microfinance Institute, many times people call them as Microfinance Bank or they are know as Microfinance Company. Let me start with tell you that all this terminologies or the different concepts of microfinance are same.
Who Can Apply Loan from Microfinance Institutions (MFI)?
A borrower with a total earnings that is annual not exceed Rs. 60,000 in or Rs. 1,20,000 in urban and semi-urban and level of loan cannot be significantly more than Rs. 50,000/-
What will be Tenure of Loan and Repayment Terms and Conditions?
A lending that is minimum should not be lower than a couple of years and Brower will make payment without any penalty if loan amount more than Rs.15000. MFI has to give a loan to borrowers that qualify any collateral or margin money. MFI is offering at minimum 70% of total loan add up to borrowers for Income generation. Borrowers will have the choice to repay the loan amount on weekly or fortnight or installments which can be month-to-month.
Can Lend that is NBFC-MFIs funds private Use Of Borrowers?
MFI can provide loan for the private intent behind the borrowers also, but the aggregate number of loans can not surpass 30% of the loan that is total.
Can a cost that is NBFC-MFI differential rate of interest to its customers?
Maximum Variation in interest rate cannot exceed 4%.
Is Any Restriction On Processing Charges for the Loan from MFI?
Loan processing fees can not be much more than 1% associated with loan quantity that is gross. Loan insurance costs may separately be levied.
Is There Any Regulation On Interest Rate Of MFI?
Yes of-course. NBFC-MFI can not charge an increased interest. Optimum cost of investment+ 10%.
Is It Essential For NBFC-MFI becoming a known user of CIBIL?
Yes. CIBIL membership is required for every NBFC & MFI.