Shift of rules sought by microfinance institutions
A sense of ease and relaxation shall be noticed among all borrowers of low income who are currently prompting for microfinance institutions. The reason behind this sense of ease is the rules of lending which are pretty outdated so that the offerings are not diversified. However they tend to be in the changed economic scenario.
There were rules set by the Reserve Bank of India about three years ago. This happened at a time when the central bank encouraged them come up with more structured products. This includes loans for higher education along with some other housing loans which are comparatively small in number.
Samit Ghosh who happens to be the president of the Microsoft Institutions Network has mentioned that RBI has been working towards encouraging the micro lenders so they become more innovative in the matter of offering loans. This includes structured products such as loans to housing, higher education as well as animal husbandry.
In one of the emails sent of Wednesday, the Reserve Bank of India said that if the regulation is dynamic and if the requirement of change is necessary, then it will definitely happen.
Source – Dinesh Unnikrishnan
Economic scenario, Housing loan, microfinance institutions, rules sought by microfinance institutions
