Note ban: MFIs seek more time for loan repayments

With disruptive influence at local level continuing to impact repayments, the Microfinance Institution Network (MFIN), the representative body for microfinance institutions (MFIs), is looking to seek six-month extension  of repayment tenure for loans stuck on account of demonetisation. Earlier, MFIN had sought three months extension from the Reserve Bank of India (RBI).
 
In December 2016, RBI had granted additional 60 days for repayment of certain loans, including microfinance loans, which were due between  November 1 and December 31.  Later, it extended the repayment tenure by another 30 days, giving farmers a window of about 90 days extra to repay