Effective from November 08, 2019 the eligibility criteria for classification under ‘Qualifying Assets’ for NBFC-MFIs are revised. The Reserve Bank of India (RBI) in it’s circular dated November 08, 2019 increased the household income limits for borrowers of NBFC-MFIs from the current level of ₹1,00,000 for rural areas and ₹1,60,000 for urban/semi-urban areas to ₹1,25,000 and ₹2,00,000 respectively.

RBI circular dated November 08, 2019, said that the above revisions are made taking in to consideration the important role played by Micro Finance Institutions (MFIs) in delivering credit to those in the bottom of the economic pyramid and to enable them play their assigned role in a growing economy.
With the revision of the limit on total indebtedness of borrowers, disbursal of loans by all Non-Banking Financial Companies-Micro Finance Institutions (NBFC-MFIs) to a borrower have been raised from Rs.60,000 for the first cycle and Rs.1,00,000 for the subsequent cycles to Rs.75,000 and Rs.1,25,000 respectively.

Surendra Naik

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Surendra Naik

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