Taking into consideration the important role played by MFIs in delivering credit to those in the bottom of the economic pyramid and to enable them play their assigned role in a growing economy, it has been decided to increase the household income limits for borrowers of NBFC-MFIs from the current level of 1,00,000 for rural areas and 1,60,000 for urban/semi urban areas to 1,25,000 and 2,00,000 respectively.
Further, the limit on total indebtedness of the borrower has been increased from 1,00,000 to 1,25,000. In light of the revision to the limit on total indebtedness, the limits on disbursal of loans have been raised from 60,000 for the first cycle and 1,00,000 for the subsequent cycles to 75,000 and 1,25,000 respectively.
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