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|key_people = | |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)}} | ||
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|name = Microfinance | |name = Microfinance Industry Network | ||
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'''Microfinance | 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 | 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 | 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 | 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== | ||
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. 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== | ||
Latest revision as of 14:57, 28 August 2025
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|
| Formation | 2009 |
|---|---|
| Location |
|
Key people | Mr Vineet Chattree (Chairperson) Mr Dibyajyoti Pattanaik (Vice Chairperson) Dr Alok Misra (Chief Executive Officer) |
| Website | http://www.mfinindia.org/ |
The Microfinance Industry Network (MFIN) (earlier known as Microfinance Institutions Network) is an association for the microfinance sector in India.[1][2]
Business model[edit | edit source]
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 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.[1]
The Microfinance Industry Network is organized into three verticals: self-regulation, advocacy & development and state initiatives.
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.
Currently, the network member organizations consist of 55[3] of the leading non-banking financial companies and microfinance institutions, whose combined businesses constitute over 90% of the Indian microfinance sector, excluding SHGs.[1][clarification needed]
Database of borrowers[edit | edit source]
The network tries to validate lending money beyond the client's (borrower) capability to pay back by finding the existing borrowings of the client through dedicated microfinance credit bureaus.[4][5] Only two microfinance institutions can lend to one borrower, and together, they cannot provide loans beyond ₹100,000.[6]
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 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 reports. The credit reports are around 80–90% accurate.[6]
References[edit | edit source]
- ↑ 1.0 1.1 1.2 "Microfinance Institutions Network | Mfin". Mfinindia.org. Archived from the original on 30 June 2012. Retrieved 24 April 2012.
- ↑ "MFIN issues post moratorium guidelines for members". The Economic Times. Retrieved 4 December 2020.
- ↑ MFIN microscape, www.mfinindia.org
- ↑ "Pixyrs Softech | NBFC Software | non Banking Financial Company". www.pixyrs.com. Archived from the original on 9 February 2018. Retrieved 22 May 2022.
- ↑ http://www.highmark.in Archived 2014-01-10 at the Wayback Machine
- ↑ 6.0 6.1 P. N. Vasudevan. "Opinion / Op-Ed : Warts and all, micro finance is working". The Hindu. Retrieved 24 April 2012.