Microfinance Gateway>Microfinance Rates in India May See Big Fall

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Home » News & Opinion » Microfinance Rates in India May See Big Fall

Microfinance Rates in India May See Big Fall
Dharamsi, K.

The microfinance industry has formed an umbrella organization, called Microfinance Institutions Network (MFIN), that will lead to lower costs of operations and a significant drop in interest rates at which the unbanked poor get loans. Currently, MFIs provide loans at 24-26%.

“We are working on a dozen projects — mobile telephony for repayment of loans, servers, MIS — because of which the human-intensive part will come down and costs of operations for us will reduce,” said Vijay Mahajan, president, MFIN, and chairman, Basix. “Costs will come down dramatically and it is our intent to pass on the benefit to our customer. We are in the budgeting month and you will see it (reduction in costs and passing them to the customers) in our operations in the next six months,” said Mahajan.

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Posted: 10 Mar 2010
Source: DNA
Originally Published: 10 Mar 2010