RBI eases lending-related restrictions, increases limits for NBFC-MFIs

'Measures are expected to boost MFI lendings to the bottom of the economic pyramid'

In support to improve the credit availability to the deep rural pockets, the Reserve Bank of India eased lending-related restrictions for non-banking financial service-micro finance institutions (NBFC-MFIs).

The central bank increased the household income limit for NBFC-MFI borrowers from the existing Rs 100,000 to Rs 125,000 and from Rs 160,000 to Rs 200,000 for rural areas and for urban/semi urban areas, respectively. Besides, per borrower lending limits for NBFC-MFI raised to Rs 1,25,000 from currently Rs one lakh. The existing loan and income limits were last revised in 2015.

“....micro finance institutions play an important role in delivering credit to