MicroFinance Industry Network, a self regulatory body for the microfinance industry, has deferred the maximum lender cap of three for a single borrower till at least Apr. 1, 2024, NDTV Profit learnt from people in the know.
MFIN had, in November 2024, announced new rules that would limit the number of microfinance lenders serving a single client from four at present to three. The schedule deadline for the same was Jan. 1, but has now been delayed.
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The new rules also bar lending to clients that have defaulted over 60 days or have an outstanding loan of Rs 3,000 or more.
The date of implementation of the fresh guardrails has been pushed as microfinance lenders sought more time to comply, persons privy to the development said.
As a result, the previous limit of a maximum of four lenders per borrower will remain in effect until the new implementation date, they added.
In July, the self regulatory body had imposed a cap of four microfinance lenders serving one borrower. It had also restricted the total microfinance loans to a client to Rs 2 lakh.
According to MFIN, there was "good adherence" to the guardrails issued in July, based on monitoring of credit bureau data for the months of August and September.
"MFIN is confident that with the existing and new measures, the sector will become more resilient and continue to play its vital role in financial inclusion. MFIN as a self regulatory authority will continue to watch the sector closely and its adherence to the new guardrails," Alok Misra, the chief executive officer and director of the network, had said on Nov. 25.
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