VFS welcomes RBI move to hike lending Cap for MFI borrowers
Village Financial Services, a leading micro finance institution of eastern region has lauded the recent RBI announcement of raising the borrowing limit of individual borrowers from Rs 50000 to Rs 1 Lakh.
The move will enhance the scope for both MFIs and their borrowers immensely.
Village Financial Services Pvt. Ltd. is a microfinance company registered as an NBFC under Reserve Bank of India under section 45 IA.
Village Financial Services (VFS) has started Micro Finance Operations in the financial year 2005-2006 having its head office at Kolkata.
Since then, VFS has grown and has touched the lives of many underprivileged and backward section of our society by providing them credit for income generating activities and helping them to become economically self-sufficient, sensitizing women about empowerment issues and bringing about a qualitative change in them and their families related to standard of living & their own status in the society.
“RBI’s proposal to raise in lending cap and revision in household income for loan eligibility is certainly a positive move for NFBC-MFIs. Nowadays loan absorbing capability has increased for borrowers. Raise in lending cap will be a great help for the borrowers as well as a boost for MFI industry”, said Kuldip Maity, MD & CEO, Village Financial Services.
With this development, in the first cycle of loan any MFI can disburse up to Rs 60,000 instead of earlier limit Rs. 35,000 and Rs 1 lakh in the subsequent cycles instead of Rs 50000. RBI has also raised an upward revision in the eligibility of rural and semi urban annual household income. This would make more people eligible for micro credit.