What is the cap on loan amount given out by a Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI)?
NBFC-MFI is a non-deposit taking NBFC which has at least 85% of its assets in the form of m microfinance. Such microfinance should be in the form of loan given to those who have annual income of Rs. 60,000 in rural areas and Rs. 120,000 in urban areas. Such loans should not exceed Rs. 50000 and its tenure should not be less than 24 months. Further, the loan has to be given without collateral. Loan repayment is done on weekly, fortnightly or monthly instalments at the choice of the borrower.