MFIs, Assam govt sign MoU for microfinance incentive and relief scheme

Microfinance Institutions Network on Tuesday said 37 microlenders and Assam government have signed an MoU for joint implementation of the Assam Microfinance Incentive and Relief Scheme (AMFIRS), 2021

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Microfinance Institutions Network (MFIN) on Tuesday said 37 microlenders and the Assam government have signed an MoU for joint implementation of the Assam Microfinance Incentive and Relief Scheme (AMFIRS), 2021.

AMFIRS is aimed at providing financial relief from the government to the microfinance borrowers in Assam to help them continue maintaining good credit discipline in COVID times.

The MOU lays down duties and responsibilities of the two parties Assam government and lenders including six universal banks, 25 NBFC MFIs, two NBFCs, and four small finance banks for ensuring successful implementation of the scheme, a release said.

The scheme will provide incentives to clients who are regular in repayments and help overdue clients become regular. It is expected to benefit more than 20 lakh women borrowers in the state, it said.

"We are confident that the implementation of the scheme will ensure continuity of microfinance for supporting economic activities of low-income households in the state while providing immediate relief to eligible customers for tiding over current stress in the microfinance sector further accentuated by Covid-19 pandemic, MFIN's CEO and Director Alok Misra said in the release.

MFIN is an industry association comprising 58 NBFC-MFIs and 39 associates including banks, small finance banks (SFBs) and NBFCs.