Non-banking financial company-microfinance institutions (NBFC-MFIs) in India may set their own interest rates freely now that the Reserve Bank of India (RBI) has repealed the ceilings that previously applied to microlending rates. In the interest of client protection, however, lenders may no longer charge a penalty fee in cases of prepayment, and client repayments may not exceed half of household income. Meanwhile,
Tag: RBI
MICROCAPITAL BRIEF: RBI Proposes Reforms Including Debt-income Ratio Cap, Repeal of Interest Rate Ceiling for Microfinance Institutions in India
The Reserve Bank of India (RBI) recently proposed a set of new rules that include eliminating the cap on the interest rates that microfinance institutions (MFIs) charge their customers and harmonizing microlending regulations for all organizations providing microloans. This would include