Mfis

Any fresh RBI directive could mainly hit large gold finance companies that have their micro-finance arms disbursing loans by taking the precious metal as collateral, the people said.

Bajaj Finance curtails Karnataka exposure by up to 50%, amid political, regulatory risk: MD Rajeev Jain

Karnataka accounted for 11 percent of the company’s balance sheet, making this a significant recalibration

Microfinance 'suffering' from high indebtedness, coercive recovery practices: RBI Deputy Governor Rao

The MFIs must enhance their credit appraisal frameworks to ensure borrowers are not over-leveraged, RBI Deputy Governor said. They must also refrain from 'coercive or unethical' recovery practices, and deliver services a manner that is both 'responsible and sustainable'.

Pramerica Insurance retains Rs 3,000-crore FY26 target despite MFI slowdown impact: CEO

Pankaj Gupta also says the company is set to significantly boost its ULIP portfolio, aiming to increase its exposure from 10 percent in FY25 to 25-50 percent by FY28.

RBI's proactive action on MFIs shows some firms failed to learn from the 2010 crisis

The RBI had given sufficient time to MFIs charging excessively high rates to revise their interest rates downwards. Some got the message; some didn’t.

Shaktikanta Das’ warning on ‘growth at any cost’ is an eye opener for aggressive MFIs

Some NBFCs have been pushing credit to customers beyond their borrowing capacity by imposing stiff performance targets on employees

Banking Central | Big Brother is watching! MFIs get a wake-up call as RBI flags a caution on rate frenzy

Banking Central June 24 edition raised the issue of some MFIs charging too-high-rate-of-interest from borrowers. The RBI has taken note of the issue and has issued a clear warning.

Chart of the Day: MFIs up the game in credit growth

Unique borrowers in the microfinance institutions rose by 15 percent, so did the average loan ticket size

Top MFIs eye 70-80% digital loan repayment in next 3-5 years

Currently, only about 10-15 percent of customers repay digitally. The organisations are considering monetarily incentivising clients to repay digitally.

Mid-caps in capital goods, defence, EMS, renewables may disappoint

In many cases, eventual outcomes turned out to be disappointing versus the market’s initial narrative of strong growth and high profitability for a long period of time, analysts said

Banking Central | Microlenders: A decade since Andhra crisis and the road ahead

Microfinance Institutions (MFIs) need to reinvent to sustain and thrive in changing times

Telangana High Court says state can't control RBI-registered MFIs

The order came on a case filed by industry body MFIN against the state money lending act enacted by the erstwhile Andhra Pradesh government

Small loan borrowers' repayment behaviour improving after being affected “temporarily” by moratoriums, MFIs say

As per MFIN’s latest micrometre report, overdue micro loans are gradually decreasing in numbers.

MFI loans that are overdue beyond 30 days to cross demonetisation peak, reach 14-16%: CRISIL

Loans in arrears for over 30 days could rise to 14-16 per cent of portfolio this month from a recent low of 6-7 per cent in March, said CRISIL.

For microfinance industry, life is not as tough in Covid second wave but pain persists

A large number of MFI borrowers and their families were ill, even in rural areas, when compared to last year's outbreak. Many MFIs reported normal collection levels in earlyApril but things worsened by May.

Can RBI's COVID-19 measures help smaller lenders survive the second wave?

The industry has welcome the RBI measures but there is a fear that if lockdowns do not end soon, the sector may face a deeper crisis. In fact, lockdowns have already started hitting MFI operations.

MFIs welcome RBI decision to give priority tag for SFB loans to smaller microlenders, but want more

Many MFIs reported normal collection levels in the early part of April but it was slowing down as livelihoods of borrowers were getting hit and they were conserving cash

Assam Microfinance Bill Might bring back ghosts of decade-old AP Act

Certain provisions of the Assam Microfinance Institutions (Regulation of Moneylending) Bill, 2020, are a repeat of the 2010 Andhra Pradesh Microfinance Bill, industry officials say. These rules could potentially harm the sector.

MFIs seek change in RBI's priority sector lending rules to tap small finance bank loans

Presently, only direct lending to economically weaker sections constitute PSL loans for SFBs.

The right way to take microfinance forward

The good news is that collection has begun to pick up again from August and will do so substantially once the moratorium is over

Very few takers among MFIs for RBI’s second loan moratorium scheme

While all MFIs have availed the first moratorium, not many are keen to avail the facility for the second time. MFIs are particularly worried about the huge interest burden that will fall upon them while availing the scheme

Coronavirus impact | MFIs sitting on a ticking time bomb as loan defaults likely to go through the roof

NBFC-MFIs are in bigger trouble since, under RBI rules, these companies have to give moratorium to borrowers. But, at the same time, NBFCs are not eligible to get moratorium from banks. Thus, it is a double whammy for these firms.

ASAI India Microfinance raises 10 million euros via ECB from German fund

Invest in Visions (IIV) is a social impact investing firm that manages an open-ended fund aimed at microfinance institutions in countries like Bolivia, Cambodia, Kosovo, Moldova and Tajikistan.

HFCs', MFIs' borrowing cost may rise over 30bps in FY19: Report

The lending rates are also likely to go up, but the pace and intensity of the increase in rates will depend on product competitiveness, existing interest rates, and a company's dominance in the industry, rating agency Crisil said in its report.