Of interest rates, margin caps & poverty lending – Paper on impact of RBI Microfinance Policy

Of interest rates, margin caps & poverty lending – Paper on impact of RBI Microfinance Policy

How the RBI policy will affect access to microcredit by low-income clients?

Last week, EDA Rural Systems Private Limited and Micro‐Credit Ratings International Ltd released a paper titled Of interest rates, margin caps & poverty lending. The paper undertakes a time series analysis of the yields on the loan portfolio of the 16 largest MFI’s in India that account for over 80% of all the MFI services provided in the country.

Historical yield data is then compared with the pricing and margin caps announced by the RBI to determine the feasibility of MFI operations within the new regulatory regime. The paper also looks at the income limit and maximum loan size criteria to determine their relevance for the availability of microcredit to various income segments of the population.
The paper presents some key findings on interest rates, margin caps, and poverty lending.

Download EDA Rural Systems and MCRIL paper –  Of interest rates, margin caps & poverty lending.

at the link below :

MFI India Interest Rate study-2011-pdf-27-pages-630KB

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Sushma is a dynamic and knowledgeable personal finance expert and entrepreneur with a rich background in business and finance, holding a bachelor's degree in the field. Her passion for financial empowerment and a drive to teach others how to navigate the world of online money-making, create passive income streams, and achieve financial freedom sets her apart. With a focus on user-friendly apps and engaging games, she guides readers through the most profitable and enjoyable digital earning opportunities.

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