Satin Creditcare Network Ltd – Reaching out!

If I can reply to your query though it is addressed to @Anand6 –

• The max loan amount that can be lent to an individual has been increased to 1 lakh by RBI recently.
• One individual can at max take loan from 2 MFIs.
• The credit rating agencies play a very important role here. With time they should be able to build a robust data so credit appraisal process can be improved much further.
• The regulations now are much better than what existed a decade back because the below parties now play the required role
• MFIN, RBI, rating agencies, Microfinance specific PE investors.
• As per a research note on MFIs –> Microfinance proponents have long argued that microfinance as an asset class deserves special attention due to its low beta, or low correlation between the performance of microfinance assets and the overall economy. This claim first achieved prominence in the wake of the Asian financial crisis of 1996 when Bank Rakyat Indonesia, an Indonesian bank with a large microfinance portfolio, managed to escape the crisis relatively unscathed.