DripFin means Drip Finance ala Drip Irrigation (i.e. small scientific value added productive measures)

Archive for January, 2009

Step Forward @ Microfinance Transparency

Step Forward @ Microfinance Transparency



The RBI has mandated all NBFC’s ( including NBFC’s engaged in Microfinance (Read:MFI’s) ) to :

a) The Board of each NBFC shall adopt an interest rate model taking into account relevant factors
such as, cost of funds, margin and risk premium, etc and determine the rate of interest to be charged
for loans and advances. The rate of interest and the approach for gradations of risk and rationale for
charging different rate of interest to different categories of borrowers shall be disclosed to the
borrower or customer in the application form and communicated explicitly in the sanction letter.

b) The rates of interest and the approach for gradation of risks shall also be made available on the

web-site of the companies or published in the relevant newspapers. The information published in the

website or otherwise published should be updated whenever there is a change in the rates of



c) The rate of interest should be annualized rates so that the borrower is aware of the exact rates

that would be charged to the account.