MicroFinance Institutions Network - Revision history

MerryHarris567 at 09:27, 28 August 2025

2025-08-28T09:27:49Z

← Older revision		Revision as of 14:57, 28 August 2025
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	\|leader_title4 =		\|leader_title4 =
	\|leader_name4 =		\|leader_name4 =
	\|key_people = ~~Manoj Kumar Nambiar~~<br> {{small\|(Chairperson)}} <br> ~~Devesh Sachdev~~<br> {{small\|(Vice Chairperson)}} <br> Alok Misra<br> {{small\|(Chief Executive Officer)}}		\|key_people = Mr Vineet Chattree<br /> {{small\|(Chairperson)}} <br /> Mr Dibyajyoti Pattanaik<br /> {{small\|(Vice Chairperson)}} <br /> Dr Alok Misra<br /> {{small\|(Chief Executive Officer)}}
	\|main_organ =		\|main_organ =
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	\|remarks =		\|remarks =
	\|name = Microfinance ~~Institutions~~ Network		\|name = Microfinance Industry Network
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	'''Microfinance ~~Institutions~~ Network''' is an association for the microfinance sector in India~~. Its member organizations constitute the leading microfinance institutions in the country~~.<ref name="mfinindia1">{{cite web \|url=http://www.mfinindia.org/content/micro-finance-institutions-network \|title=Microfinance Institutions Network \| Mfin \|publisher=Mfinindia.org \|accessdate=2012-04-24 \|url-status=dead \|archiveurl=https://web.archive.org/web/20120630012543/http://www.mfinindia.org/content/micro-finance-institutions-network \|archivedate=2012-06-30 }}</ref><ref>{{Cite news\|title=MFIN issues post moratorium guidelines for members\|work=The Economic Times\|url=https://economictimes.indiatimes.com/small-biz/sme-sector/mfin-issues-post-moratorium-guidelines-for-members/articleshow/77872297.cms?from=mdr\|access-date=2020-12-04}}</ref>		The '''Microfinance Industry Network (MFIN)''' (earlier known as Microfinance Institutions Network) is an association for the [[microfinance]] sector in [[India]].<ref name="mfinindia1">{{cite web \|url=http://www.mfinindia.org/content/micro-finance-institutions-network \|title=Microfinance Institutions Network \| Mfin \|publisher=Mfinindia.org \|accessdate=2012-04-24 \|url-status=dead \|archiveurl=https://web.archive.org/web/20120630012543/http://www.mfinindia.org/content/micro-finance-institutions-network \|archivedate=2012-06-30 }}</ref><ref>{{Cite news\|title=MFIN issues post moratorium guidelines for members\|work=The Economic Times\|url=https://economictimes.indiatimes.com/small-biz/sme-sector/mfin-issues-post-moratorium-guidelines-for-members/articleshow/77872297.cms?from=mdr\|access-date=2020-12-04}}</ref>

	==Business model==		==Business model==
	Microfinance ~~Institutions~~ Network was created to promote ~~the key objectives of~~ [[microfinance]]~~, which is to help economically under served communities achieve greater financial independence and build sustainable livelihoods~~. The network~~'s primary objective is to work towards the robust development of the microfinance sector, by promoting~~ responsible lending, client protection, good governance and a supportive regulatory environment. It was established in October 2009 as a society under the Andhra Pradesh Societies Registration Act 2001. According to its bylaws, all [[Non-banking financial company\|non-banking finance companies]] registered with the [[Reserve Bank of India]] are eligible for membership of the society. The Reserve Bank of India accorded recognition to the network via ~~its~~ letter dated 16 June 2014. Microfinance ~~Institutions~~ Network works ~~closely~~ with regulators and other key stakeholders ~~and plays an active part in the larger financial inclusions dialogue through the medium of microfinance~~.<ref name="mfinindia1"/>		The Microfinance Industry Network was created to promote [[microfinance]]. The network promotes responsible lending, client protection, good governance and a supportive regulatory environment. It was established in October 2009 as a society under the Andhra Pradesh Societies Registration Act 2001. According to its bylaws, all [[Non-banking financial company\|non-banking finance companies]] registered with the [[Reserve Bank of India]] are eligible for membership in the society. The Reserve Bank of India accorded recognition to the network via a letter dated 16 June 2014. The Microfinance Industry Network works actively with regulators and other key stakeholders.<ref name="mfinindia1"/>

	Microfinance ~~Institutions~~ Network is organized into ~~four~~ verticals~~, namely~~ self-regulation, advocacy ~~and~~ development~~, communications and marketing,~~ and state initiatives to be able to focus on the priorities of the sector in an optimum manner. While previously policy advocacy was the primary focus and continues to be so, with the evolution of the sector there are various new functions that have become part of the framework. The self-regulatory function was part of the Reserve Banks of India's remit to the network to help supervise compliance at a more granular level on behalf of the regulator. With the sector coming back into its own over the last five years, there was felt a need for greater engagement with external stakeholders and a strong communication strategy was thought to be the way ahead. With the industry growing steadily ground level issues are often key indicators of sectoral good health. With this in view the state initiative team keeps continuously engaging with industry issues at a field level to ensure smooth functioning. Microfinance Institutions Network's internal [[whistle-blowing]] mechanism tries not to charge beyond rates suggested by the Reserve Bank of India from its member microfinance institutions. This is to ensure there is no more possibilities of charging high rate of interest rates. The Reserve Bank of India has set a cap on the lending rate of microfinance institutions at 26 per cent per annum and a margin cap of 12 per cent over their cost of funds, whichever is lower.		The Microfinance Industry Network is organized into three verticals: self-regulation, advocacy & development and state initiatives.

	Currently network member organizations consist of 55<ref>MFIN microscape, www.mfinindia.org</ref> of the leading non-banking financial companies and microfinance institutions whose combined ~~business constitutes~~ over 90% of the Indian microfinance sector excluding SHGs.{{clarify\|reason=What is an SHG?\|date=April 2021}}~~<ref name="mfinindia1"/>~~		The self-regulatory function was part of the Reserve Bank of India's remit to the network to help supervise compliance on behalf of the regulator. Microfinance Industry Network's internal [[whistle-blowing]] mechanism tries not to charge beyond rates suggested by the Reserve Bank of India from its member microfinance institutions. The Reserve Bank of India has set a cap on the lending rate of microfinance institutions at 26 per cent per year and a margin cap of 12 per cent over their [[Cost of funds index\|cost of funds]].

			Currently, the network member organizations consist of 55<ref>MFIN microscape, www.mfinindia.org</ref> of the leading non-banking financial companies and microfinance institutions, whose combined businesses constitute over 90% of the Indian microfinance sector, excluding SHGs.<ref name="mfinindia1" />{{clarify\|reason=What is an SHG?\|date=April 2021}}

	==Database of borrowers==		==Database of borrowers==
	~~Validation of~~ lending money beyond the ~~clients~~ (borrower) capability to pay back ~~was previously a challenge to the Reserve Bank of India. The network tries to validate this aspect~~ by finding the existing borrowings of the client through dedicated microfinance credit bureaus,<ref>https://pixyrs.com/nbfc-software.php~~{{dead link~~\|date=~~January~~ 2018 \|~~bot=InternetArchiveBot \|fix~~-~~attempted~~=~~yes~~ }}</ref><ref>http://www.highmark.in {{webarchive\|url=https://web.archive.org/web/20140110141443/http://highmark.in/ \|date=2014-01-10 }}</ref> ~~only~~ two microfinance institutions can lend to one borrower and together they cannot provide loans beyond [[Indian rupee\|Rs]] 100,000.<ref name="theHindu24Apr2012">{{cite web\|author=P. N. Vasudevan \|url=http://www.thehindu.com/opinion/op-ed/article3346237.ece \|title=Opinion / Op-Ed : Warts and all, micro finance is working \|~~publisher~~=The Hindu \|date= \|accessdate=2012-04-24}}</ref>		The network tries to validate lending money beyond the client's ([[Debtor\|borrower]]) capability to pay back by finding the existing borrowings of the client through dedicated microfinance credit bureaus.<ref>{{cite web \|url=http://www.pixyrs.com/nbfc-software.php \|title=Pixyrs Softech \| NBFC Software \| non Banking Financial Company \|website=www.pixyrs.com \|access-date=22 May 2022 \|archive-url=https://web.archive.org/web/20180209135236/http://www.pixyrs.com/nbfc-software.php \|archive-date=9 February 2018 \|url-status=dead}}</ref><ref>http://www.highmark.in {{webarchive\|url=https://web.archive.org/web/20140110141443/http://highmark.in/ \|date=2014-01-10 }}</ref> Only two microfinance institutions can lend to one borrower, and together, they cannot provide loans beyond [[Indian rupee\|₹]]100,000.<ref name="theHindu24Apr2012">{{cite web\|author=P. N. Vasudevan \|url=http://www.thehindu.com/opinion/op-ed/article3346237.ece \|title=Opinion / Op-Ed : Warts and all, micro finance is working \|work=The Hindu \|date= \|accessdate=2012-04-24}}</ref>

	The network has facilitated setting up a database of the borrowers which confirms the necessary validation required. The database consists of over 30 million micro borrowers and about 60 million loan accounts. When a person applies for the loan, the networkI checks for the loan history and verifies the Reserve Bank of India benchmark with the [[credit report]]s. The credit reports are 80-90% accurate.<ref name="theHindu24Apr2012" />

	~~Many~~ network ~~members undertake significant social activities across health~~, ~~education~~ and ~~skill development on~~ a ~~non-profit basis~~.<ref name="theHindu24Apr2012" />		The network has facilitated setting up a database of the borrowers, which confirms the necessary validation. The database consists of over 30 million microborrowers and about 60 million [[Loan\|loan accounts]]. When a person applies for the loan, the network checks for the loan history and verifies the Reserve Bank of India benchmark with the [[credit report]]s. The [[Credit history\|credit reports]] are around 80–90% accurate.<ref name="theHindu24Apr2012" />

	==References==		==References==

122.161.243.209 at 07:22, 2 July 2021

2021-07-02T07:22:01Z

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{{primary sources|date=April 2012}}
{{Use Indian English|date=July 2019}}
{{Use dmy dates|date=July 2019}}

{{Infobox organization
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|key_people = Manoj Kumar Nambiar {{small|(Chairperson)}} Devesh Sachdev {{small|(Vice Chairperson)}} Alok Misra {{small|(Chief Executive Officer)}}
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'''Microfinance Institutions Network''' is an association for the microfinance sector in India. Its member organizations constitute the leading microfinance institutions in the country.<ref name="mfinindia1">{{cite web |url=http://www.mfinindia.org/content/micro-finance-institutions-network |title=Microfinance Institutions Network | Mfin |publisher=Mfinindia.org |accessdate=2012-04-24 |url-status=dead |archiveurl=https://web.archive.org/web/20120630012543/http://www.mfinindia.org/content/micro-finance-institutions-network |archivedate=2012-06-30 }}</ref><ref>{{Cite news|title=MFIN issues post moratorium guidelines for members|work=The Economic Times|url=https://economictimes.indiatimes.com/small-biz/sme-sector/mfin-issues-post-moratorium-guidelines-for-members/articleshow/77872297.cms?from=mdr|access-date=2020-12-04}}</ref>

==Business model==
Microfinance Institutions Network was created to promote the key objectives of [[microfinance]], which is to help economically under served communities achieve greater financial independence and build sustainable livelihoods. The network's primary objective is to work towards the robust development of the microfinance sector, by promoting responsible lending, client protection, good governance and a supportive regulatory environment. It was established in October 2009 as a society under the Andhra Pradesh Societies Registration Act 2001. According to its bylaws, all [[Non-banking financial company|non-banking finance companies]] registered with the [[Reserve Bank of India]] are eligible for membership of the society. The Reserve Bank of India accorded recognition to the network via its letter dated 16 June 2014. Microfinance Institutions Network works closely with regulators and other key stakeholders and plays an active part in the larger financial inclusions dialogue through the medium of microfinance.<ref name="mfinindia1"/>

Microfinance Institutions Network is organized into four verticals, namely self-regulation, advocacy and development, communications and marketing, and state initiatives to be able to focus on the priorities of the sector in an optimum manner. While previously policy advocacy was the primary focus and continues to be so, with the evolution of the sector there are various new functions that have become part of the framework. The self-regulatory function was part of the Reserve Banks of India's remit to the network to help supervise compliance at a more granular level on behalf of the regulator. With the sector coming back into its own over the last five years, there was felt a need for greater engagement with external stakeholders and a strong communication strategy was thought to be the way ahead. With the industry growing steadily ground level issues are often key indicators of sectoral good health. With this in view the state initiative team keeps continuously engaging with industry issues at a field level to ensure smooth functioning. Microfinance Institutions Network's internal [[whistle-blowing]] mechanism tries not to charge beyond rates suggested by the Reserve Bank of India from its member microfinance institutions. This is to ensure there is no more possibilities of charging high rate of interest rates. The Reserve Bank of India has set a cap on the lending rate of microfinance institutions at 26 per cent per annum and a margin cap of 12 per cent over their cost of funds, whichever is lower.

Currently network member organizations consist of 55<ref>MFIN microscape, www.mfinindia.org</ref> of the leading non-banking financial companies and microfinance institutions whose combined business constitutes over 90% of the Indian microfinance sector excluding SHGs.{{clarify|reason=What is an SHG?|date=April 2021}}<ref name="mfinindia1"/>

==Database of borrowers==
Validation of lending money beyond the clients (borrower) capability to pay back was previously a challenge to the Reserve Bank of India. The network tries to validate this aspect by finding the existing borrowings of the client through dedicated microfinance credit bureaus,<ref>https://pixyrs.com/nbfc-software.php{{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>http://www.highmark.in {{webarchive|url=https://web.archive.org/web/20140110141443/http://highmark.in/ |date=2014-01-10 }}</ref> only two microfinance institutions can lend to one borrower and together they cannot provide loans beyond [[Indian rupee|Rs]] 100,000.<ref name="theHindu24Apr2012">{{cite web|author=P. N. Vasudevan |url=http://www.thehindu.com/opinion/op-ed/article3346237.ece |title=Opinion / Op-Ed : Warts and all, micro finance is working |publisher=The Hindu |date= |accessdate=2012-04-24}}</ref>

The network has facilitated setting up a database of the borrowers which confirms the necessary validation required. The database consists of over 30 million micro borrowers and about 60 million loan accounts. When a person applies for the loan, the networkI checks for the loan history and verifies the Reserve Bank of India benchmark with the [[credit report]]s. The credit reports are 80-90% accurate.<ref name="theHindu24Apr2012" />

Many network members undertake significant social activities across health, education and skill development on a non-profit basis.<ref name="theHindu24Apr2012" />

==References==
{{Reflist}}

==External links==
*[http://www.mfinindia.org Official site]
*[https://web.archive.org/web/20111223222455/http://www.mfinindia.org/member-list Member List]

{{Authority control}}

[[Category:Microfinance organizations]]
[[Category:Financial services companies of India]]