New rules of RBI for microlenders to help widen profits: Crisil

30 Mar 2022 CW Team

According to the Crisil Rating report, the Reserve Bank of India's (RBI) new rules for microfinance institutions (MFIs) will help widen profits by giving such entities greater flexibility in operations.

According to the Crisil Rating report, removing the interest margin cap on loans is the biggest amendment in regulation that will help non-banking finance company-microfinance institutions (NBFC-MFIs) adopt a risk-based pricing approach and support profitability.

It will benefit mid-sized entities, which are under a lending rate cap linked to the base rate with relatively higher borrowing costs, and those with a rural focus, where competition is less and borrowers are less sensitive to interest rates.

It is an initiative to increase the permissible household income to Rs 3 lakh per annum, and the limit of non-microfinance loans to 25% of total assets would help grow the addressable market for such entities.

The last two years have been challenging for microfinance lenders due to the pandemic as they struggled with high credit costs.

Deputy Chief Ratings Officer, Krishnan Sitaraman, told the media that the amendment would help NBFC-MFIs to adopt risk-based pricing, improve profitability, expand the addressable market, and also address concerns about the over-indebtedness of borrowers.

Image Source

Also read: RBI to hold lending rate steady at 4% to aid economic recovery

Real Estate

11 Mar 2026

Kumar Corp Launches Plumeria Project In Bengaluru

Kumar Corp has launched Kumar Plumeria, a premium residential development near KIADB Aerospace Park in Bengaluru. The project comprises six residential towers offering 3.5 BHK, 3.5 BHK with staff and 4.5 BHK with staff residences designed with expansive balconies, natural ventilation and landscaped surroundings. The development features saleable areas ranging from about 2,680 sq. ft. to 3,070 sq. ft. and is planned as a low-density community with around 100 residences. The project integrates a landscape master plan that includes open green spaces, community zones and recreational amenities. ..

Blum India Launches Blum Club App

Blum India has introduced the Blum Club app, a loyalty platform designed for carpenters and contractors to recognise and reward their role in furniture installation and interior construction. The app allows users to scan QR codes on Blum product packaging to collect points linked to purchases. These points can be redeemed directly as monetary transfers to bank accounts through the platform’s redemption system. Neelam Shah, Head of Marketing and Communications at Blum India, said the initiative is aimed at recognising the contribution of craftsmen who install hardware products in residentia..

Enlight Metals Launches Waste Free Steel Procurement Model

Enlight Metals has introduced its Waste Free Steel (WFS) initiative, aimed at transforming steel procurement through precision-driven sourcing and advanced material planning. The programme seeks to reduce steel wastage by 8–10 per cent in infrastructure and EPC projects by shifting procurement practices from volume-based buying to drawing-based supply aligned with engineering requirements.The initiative is powered by Enlight Metals’ Agentic AI–enabled metal procurement platform, which enables project teams to submit technical drawings and material specifications for detailed analysis. Ba..