Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 73,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'catslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 73,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'catslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 74,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'artileslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 74,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'artileslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-trace').style.display = (document.getElementById('cakeErr67f8acbb16fb2-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f8acbb16fb2-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-code').style.display = (document.getElementById('cakeErr67f8acbb16fb2-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-context').style.display = (document.getElementById('cakeErr67f8acbb16fb2-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f8acbb16fb2-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f8acbb16fb2-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 3785,
		&#039;title&#039; =&gt; &#039;MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;&lt;br /&gt;
&lt;/font&gt;
&lt;div align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 3875,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 3785,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Microfinance,Financial Inclusion&#039;,
	&#039;metaDesc&#039; =&gt; &#039;


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;font &gt;&lt;br /&gt;&lt;/font&gt;&lt;div align=&quot;justify&quot;&gt;&lt;font &gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 3785,
	&#039;title&#039; =&gt; &#039;MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;&lt;br /&gt;
&lt;/font&gt;
&lt;div align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 3875,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 3785
$metaTitle = &#039;LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;
$metaKeywords = &#039;Microfinance,Financial Inclusion&#039;
$metaDesc = &#039;


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to...&#039;
$disp = &#039;&lt;font &gt;&lt;br /&gt;&lt;/font&gt;&lt;div align=&quot;justify&quot;&gt;&lt;font &gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew | Im4change.org</title>
    <meta name="description" content="


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <font ><br /></font><div align="justify"><font >Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br /><br /><font >Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br /><br /><font >Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br /><br /><font >However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br /><br /><font >Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br /><br /><font >This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br /><br /><font >Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br /><br /><font >According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br /><br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$maxBufferLength = (int) 8192
$file = '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php'
$line = (int) 853
$message = 'Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853'
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 48
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Code Context
            $response->getStatusCode(),

            ($reasonPhrase ? ' ' . $reasonPhrase : '')

        ));
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-trace').style.display = (document.getElementById('cakeErr67f8acbb16fb2-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f8acbb16fb2-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-code').style.display = (document.getElementById('cakeErr67f8acbb16fb2-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-context').style.display = (document.getElementById('cakeErr67f8acbb16fb2-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f8acbb16fb2-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f8acbb16fb2-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 3785,
		&#039;title&#039; =&gt; &#039;MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;&lt;br /&gt;
&lt;/font&gt;
&lt;div align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 3875,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 3785,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Microfinance,Financial Inclusion&#039;,
	&#039;metaDesc&#039; =&gt; &#039;


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;font &gt;&lt;br /&gt;&lt;/font&gt;&lt;div align=&quot;justify&quot;&gt;&lt;font &gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 3785,
	&#039;title&#039; =&gt; &#039;MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;&lt;br /&gt;
&lt;/font&gt;
&lt;div align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 3875,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 3785
$metaTitle = &#039;LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;
$metaKeywords = &#039;Microfinance,Financial Inclusion&#039;
$metaDesc = &#039;


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to...&#039;
$disp = &#039;&lt;font &gt;&lt;br /&gt;&lt;/font&gt;&lt;div align=&quot;justify&quot;&gt;&lt;font &gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew | Im4change.org</title>
    <meta name="description" content="


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <font ><br /></font><div align="justify"><font >Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br /><br /><font >Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br /><br /><font >Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br /><br /><font >However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br /><br /><font >Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br /><br /><font >This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br /><br /><font >Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br /><br /><font >According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br /><br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$reasonPhrase = 'OK'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitStatusLine() - CORE/src/Http/ResponseEmitter.php, line 148
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 54
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Code Context
                    $value

                ), $first);

                $first = false;
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-trace').style.display = (document.getElementById('cakeErr67f8acbb16fb2-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f8acbb16fb2-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-code').style.display = (document.getElementById('cakeErr67f8acbb16fb2-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f8acbb16fb2-context').style.display = (document.getElementById('cakeErr67f8acbb16fb2-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f8acbb16fb2-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f8acbb16fb2-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 3785,
		&#039;title&#039; =&gt; &#039;MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;&lt;br /&gt;
&lt;/font&gt;
&lt;div align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 3875,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 3785,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Microfinance,Financial Inclusion&#039;,
	&#039;metaDesc&#039; =&gt; &#039;


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;font &gt;&lt;br /&gt;&lt;/font&gt;&lt;div align=&quot;justify&quot;&gt;&lt;font &gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 3785,
	&#039;title&#039; =&gt; &#039;MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;&lt;br /&gt;
&lt;/font&gt;
&lt;div align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 3875,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 3785
$metaTitle = &#039;LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew&#039;
$metaKeywords = &#039;Microfinance,Financial Inclusion&#039;
$metaDesc = &#039;


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to...&#039;
$disp = &#039;&lt;font &gt;&lt;br /&gt;&lt;/font&gt;&lt;div align=&quot;justify&quot;&gt;&lt;font &gt;Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &amp;mdash; many of whom are yet to get even a bank account &amp;mdash; while urban customers get personal loans at 12 per cent from commercial banks.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &amp;ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&amp;rsquo;t fund MFIs that charge more than 24 per cent,&amp;rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &amp;ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&amp;rdquo; a PSU bank official said.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&amp;rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &amp;ldquo;Then why should the MFIs charge higher interest rates?&amp;rdquo; PSU bankers ask.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;font &gt;According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.&lt;/font&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew | Im4change.org</title>
    <meta name="description" content="


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <font ><br /></font><div align="justify"><font >Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br /><br /><font >Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br /><br /><font >Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br /><br /><font >However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br /><br /><font >Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br /><br /><font >This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br /><br /><font >Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br /><br /><font >According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br /><br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$cookies = []
$values = [
	(int) 0 => 'text/html; charset=UTF-8'
]
$name = 'Content-Type'
$first = true
$value = 'text/html; charset=UTF-8'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitHeaders() - CORE/src/Http/ResponseEmitter.php, line 181
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 55
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

<head>

    <link rel="canonical" href="<?php echo Configure::read('SITE_URL'); ?><?php echo $urlPrefix;?><?php echo $article_current->category->slug; ?>/<?php echo $article_current->seo_url; ?>.html"/>

    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>

$viewFile = '/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp'
$dataForView = [
	'article_current' => object(App\Model\Entity\Article) {

		'id' => (int) 3785,
		'title' => 'MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew',
		'subheading' => '',
		'description' => '<font face="arial,helvetica,sans-serif" size="3"><br />
</font>
<div align="justify">
<font face="arial,helvetica,sans-serif" size="3">Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br />
<br />
</div>',
		'credit_writer' => 'The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/',
		'article_img' => '',
		'article_img_thumb' => '',
		'status' => (int) 1,
		'show_on_home' => (int) 1,
		'lang' => 'EN',
		'category_id' => (int) 16,
		'tag_keyword' => '',
		'seo_url' => 'mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875',
		'meta_title' => null,
		'meta_keywords' => null,
		'meta_description' => null,
		'noindex' => (int) 0,
		'publish_date' => object(Cake\I18n\FrozenDate) {},
		'most_visit_section_id' => null,
		'article_big_img' => null,
		'liveid' => (int) 3875,
		'created' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'edate' => '',
		'tags' => [
			[maximum depth reached]
		],
		'category' => object(App\Model\Entity\Category) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[hasErrors]' => false,
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'Articles'
	
	},
	'articleid' => (int) 3785,
	'metaTitle' => 'LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew',
	'metaKeywords' => 'Microfinance,Financial Inclusion',
	'metaDesc' => '


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to...',
	'disp' => '<font ><br /></font><div align="justify"><font >Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br /><br /><font >Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br /><br /><font >Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br /><br /><font >However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br /><br /><font >Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br /><br /><font >This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br /><br /><font >Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br /><br /><font >According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br /><br /></div>',
	'lang' => 'English',
	'SITE_URL' => 'https://im4change.in/',
	'site_title' => 'im4change',
	'adminprix' => 'admin'
]
$article_current = object(App\Model\Entity\Article) {

	'id' => (int) 3785,
	'title' => 'MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew',
	'subheading' => '',
	'description' => '<font face="arial,helvetica,sans-serif" size="3"><br />
</font>
<div align="justify">
<font face="arial,helvetica,sans-serif" size="3">Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br />
<br />
<font face="arial,helvetica,sans-serif" size="3">According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br />
<br />
</div>',
	'credit_writer' => 'The Financial Express, 18 October, 2010, http://www.financialexpress.com/news/mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc/698920/',
	'article_img' => '',
	'article_img_thumb' => '',
	'status' => (int) 1,
	'show_on_home' => (int) 1,
	'lang' => 'EN',
	'category_id' => (int) 16,
	'tag_keyword' => '',
	'seo_url' => 'mfi-interest-rate-on-loans-likely-to-be-capped-at-around-24-pc-by-mashusudan-sahoo-and-george-mathew-3875',
	'meta_title' => null,
	'meta_keywords' => null,
	'meta_description' => null,
	'noindex' => (int) 0,
	'publish_date' => object(Cake\I18n\FrozenDate) {},
	'most_visit_section_id' => null,
	'article_big_img' => null,
	'liveid' => (int) 3875,
	'created' => object(Cake\I18n\FrozenTime) {},
	'modified' => object(Cake\I18n\FrozenTime) {},
	'edate' => '',
	'tags' => [
		(int) 0 => object(Cake\ORM\Entity) {},
		(int) 1 => object(Cake\ORM\Entity) {}
	],
	'category' => object(App\Model\Entity\Category) {},
	'[new]' => false,
	'[accessible]' => [
		'*' => true,
		'id' => false
	],
	'[dirty]' => [],
	'[original]' => [],
	'[virtual]' => [],
	'[hasErrors]' => false,
	'[errors]' => [],
	'[invalid]' => [],
	'[repository]' => 'Articles'

}
$articleid = (int) 3785
$metaTitle = 'LATEST NEWS UPDATES | MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew'
$metaKeywords = 'Microfinance,Financial Inclusion'
$metaDesc = '


Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to...'
$disp = '<font ><br /></font><div align="justify"><font >Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers &mdash; many of whom are yet to get even a bank account &mdash; while urban customers get personal loans at 12 per cent from commercial banks.</font><br /><br /><font >Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. &ldquo;We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won&rsquo;t fund MFIs that charge more than 24 per cent,&rdquo; a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate.</font><br /><br /><font >Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts.</font><br /><br /><font >However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act.</font><br /><br /><font >Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. &ldquo;Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,&rdquo; a PSU bank official said.</font><br /><br /><font >This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent.</font><br /><br /><font >Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI&rsquo;s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. &ldquo;Then why should the MFIs charge higher interest rates?&rdquo; PSU bankers ask.</font><br /><br /><font >According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.</font><br /><br /></div>'
$lang = 'English'
$SITE_URL = 'https://im4change.in/'
$site_title = 'im4change'
$adminprix = 'admin'

include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

MFI interest rate on loans likely to be capped at around 24 pc by Mashusudan Sahoo and George Mathew

Interest rates on loans from microfinance institutions (MFIs) are likely to be capped at around 24 per cent. Currently, MFIs are charging 26-40 per cent on small loans extended to their rural customers — many of whom are yet to get even a bank account — while urban customers get personal loans at 12 per cent from commercial banks. Though neither the RBI nor the government has fixed any ceiling on MFI interest rates, the consensus among bankers and the regulator is that rates should not be more than 24 per cent. “We are awaiting a directive on the 24 per cent ceiling from the RBI and the government. Even if a cap is not imposed officially, this might be imposed on an informal basis and banks won’t fund MFIs that charge more than 24 per cent,” a senior official of a nationalised bank said. The finance ministry has already asked PSU banks to not extend funds to MFIs which are charging high interest rate. Nabard chairman U C Sarangi said MFIs are in a position to reduce interest rates as their margins have gone up and operational expenses have come down. As per the Microfinance Bill, which is now pending in Parliament, Nabard will become the regulator for MFIs that are registered as societies and trusts. However, the problem is that microfinance companies come under different regulations. MFIs registered as NBFCs (like SKS Microfinance) are regulated by the RBI. There are also non-profit NBFCs registered under Section 25 of the Companies Act. Banks that are funding MFIs are also not comfortable with the high rates being charged by MFIs, as banks generally charge around 9-11 per cent from such companies. “Banks have slowed down the funding of microfinance companies due to the recent problems relating to high interest rates and use of strong-arm tactics by MFIs for loan recovery. We have already cut funding to MFIs that charge high rates,” a PSU bank official said. This means MFIs that rely on banks for their fund requirements will have to cut rates. SKS Microfinance, the leader in the segment, charges 26 per cent rate on its loans. Some MFIs in eastern and southern parts of the country have even been charging 40-45 per cent. Another grouse of the banking industry is that the recovery rate is fairly good in the MFI segment. The RBI’s survey of MFIs has revealed a recovery rate of over 90 per cent in the MFI segment. “Then why should the MFIs charge higher interest rates?” PSU bankers ask. According to bankers, MFIs have been exploiting the inability of normal banks to reach out to poor households in the rural areas that are not in a position to offer any collateral. It is no wonder then that total outstanding loans portfolio rose from Rs 3,456 crore in 2007 to Rs 11,734 crore in 2009, indicating a compounded annual growth rate (CAGR) of 84.3 per cent. For-profit MFIs have now gained in market share, both in terms of clients and total outstanding loan portfolio.