The redressal measures seek to help customers under stress with a cut-off date as of February 29 this year with a flexibility to pay back with a lower monthly payment
Guwahati: To address the issues of some stressed-customers in the state of Assam with special focus on upper Assam tea garden workers, the two Reserve Bank of India (RBI)-recognized micro-finance industry Self-Regulatory Organisations – Micro-Finance Institutions Network (MFIN) and Sa-Dhan – announced a series of redressal measures here on Thursday.
The redressal measures seek to help customers under stress with a cut-off date as of February 29 this year with a flexibility to pay back with a lower monthly payment, at a lower rate of interest and get prompt repayment benefits on regular payment and closure of the existing loan.
Speaking on this, CEO of MFIN, Harsh Srivastava said, “The micro-finance sector has provided unsecured, small loans to the undeserved segment of the society across 32 states in India. Assam has been the 3rd best state on repayment efficiency in the country as of September 2019. We are delighted to offer these measures to customers who have missed their payments in the last ¾ months due to various reasons.”
“This has been created after extensive consultations with all the stakeholders including clients, our regulator RBI, local associations and also the state government with all types of lenders. This seeks to help of clients come back on their repayment and improve their credit record in the bureau which is the key for any future loans,” the CEO further added.
The micro-finance sector in India is regulated by the Reserve Bank of India through a special category called NBFC MFI’s - other entities like NBFC’s, small finance banks and also universal banks offer micro-finance loans. MFIs are a key vehicle for Financial inclusion, a key priority for the RBI and the central and state government.
As of December 2019, the loan outstanding in Assam was Rs 11.8 crore to 26.9 lakh customers.
MFIN is a premier industry association comprising 56 NBFC-MFIs and 35 associates including banks, small finance banks and NBFCs.
Whereas, Sa-Dhan is a RBI recognized self-regulatory organization (SRO) for the Microfinance sector.