MFIs seek a Rs 1,000 crore helpline

The Microfinance Institutions Network (MFIN), a self-regulatory body of a clutch of 44 NBFC MFIs, has asked for Rs 1,000 crore in the form of business continuity facility, an euphemism for emergency money, to ensure survival. In an email to fellow MFIN members, Vijay Mahajan, the president of the NBFC-MFI association, said the loan has been sought from SIDBI, SBI , ICICI and other major banks.“This will be used for tiding over liquidity crisis for any MFI, to obviate default, as well as to permit token disbursements in non-AP states, so that recoveries continue there,” the email, a copy of which is with ET, said.

MFIs come under pressure after the Andhra Pradesh government issued an ordinance last month to regulate the industry’s money lending operations. The complete story, here.