Issuing a circular to microfinance companies, the central bank introduce a provision under which two microfinance companies can lend a sum under a limit to the same individual.
‘Two microfinance companies can lend micro loans without collateral a sum of money within a limit under to a single individual
Right now, an individual can borrow loan from one microfinance company only.
Similarly, the borrower who has taken loans from any ‘A’, ‘B’ and ‘ C’ ranked BFIs are illegible to borrow from microfinance companies.
As per the circular, while lending such loans, it has to be ensure that the borrower has not taken loans from any other BFIs.
