INDIA’S FIRST CREDIT BUREAU IS UNDERTAKING A MAJOR EXPANSION IN PARTNERSHIP WITH 31 LEADING MICROFINANCE INSTITUTIONS
Credit Information Bureau (India) Limited (CIBIL) has inked partnership with 31 leading Microfinance Institutions in India to start a Microfinance Credit Information Bureau. These 31 MFI’s are part of the Microfinance Institutions Network (MFIN), a self regulatory organization of NBFC MFIs that aims to work with regulators to promote microfinance to achieve larger financial inclusion goals.
Currently, the Indian microfinance sector is estimated at around 120 million households which translate into a credit demand of Rs 1.2 trillion at an average per household credit demand of Rs 10,000/-.* Having a huge potential to strengthen India’s economy further, this sector has grown steadily, but issues over multiple lending and overexposure could become a concern. As a welcome step to mitigate this concern, the MFIs now have decided to join hands with CIBIL to set up a credit information bureau with the view to improving the credit risk management and to help keep over-indebtedness under check. CIBIL is the largest credit bureau in India and is undertaking this expansion to remain at the head of the pack of Equifax and Experian who have recently received a license from the Reserve Bank of India to create competing credit bureaus
Source: CRIBIL Press Release To read the full story click on the link: https://2018.biia.com/cci_industry_news.php