MFIN keeps tabs on underwriting norms

Mumbai: The microfinance industry’s self-regulatory body MFIN on Tuesday announced that it has tightened loan underwriting guidelines for its members amid concerns about over-indebtedness among the borrowers.

Micro Finance Industry Network (MFIN) said the revised guidelines take care of current challenges in lending, wherein a lender does not get data on monthly outflows from a household on account of previous loans or even the ‘bullet repayments’ wherein money is paid at the end of a loan period.