 "The limit of loans under the Pradhan Mantri Mudra Yojana (PMMY) was doubled to Rs 20 lakh recently, inserting a new category—Tarun Plus. Launched 10 years ago, the scheme intended to provide microfinance to small entrepreneurs. However, the number of")
The microfinance industry, already facing multiple headwinds, is now bracing for another disruption with the Tamil Nadu government introducing a Bill to prevent coercive loan recovery practices. Microfinance players, including banks and non-banking financial companies, said that the checks and balances proposed in the Bill are likely to hinder micro-lending operations.
“It is not a conducive environment to work which puts so many checks and balances,” said a senior executive of a small finance bank. “As per the Bill, we cannot go for regular collection as we don’t know what can constitute harassment and can land us in jails. Plus,
