The Microfinance Institutions Network (MFIN), a self-regulatory organization of 35 of India’s microfinance companies, is currently working on several projects that it predicts will lower interest rates on microloans. Mr Vijay Mahajan, President of MFIN and Chairman of BASIX, an Indian microfinance institution (MFI), explained, “We are working on a dozen projects — mobile telephony for repayment of loans, servers — because of which the human-intensive part will come down and costs of operations for us will reduce.” He added that these cost reductions will be passed on to borrowers, beginning within the next six months.

By Stefanie Rubin, Research Associate

About the Microfinance Institutions Network (MFIN):

The Microfinance Institutions Network (MFIN) is a self-regulatory organization comprised of 35 of India’s microfinance companies. Mr Vijay Mahajan, Chairman of MFIN, is also the Chairman of the BASIX Group, an Indian microfinance institution established in 1996. BASIX Group consists of several companies that provide savings and insurance services to poor households in rural India as well as agricultural/business development services and institutional development services.

Additional Resources:

Source Article: DNA India: “Microfinance Rates May See Big Fall,” http://www.dnaindia.com/money/report_microfinance-rates-may-see-big-fall_1357339

MicroCapital Universe: Microfinance Institutions Network (MFIN): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+India+Network+%28MFIN%29

MICROCAPITAL BRIEF: India’s Microfinance Institutions Network (MFIN) Members to Create Credit Bureau in an Effort to Prevent Client Overindebtedness and Maximize Repayment: http://www.microcapital.org/microcapital-brief-india%E2%80%99s-microfinance-institutions-network-mfin-members-to-create-credit-bureau-in-an-effort-to-prevent-client-overindebtedness-and-maximize-repayment/

MICROCAPITAL BRIEF: Mr Vijay Mahajan and Mr P N Vasudevan Debate Self-Regulation in Indian Microfinance Industry, January 20, 2010: http://www.microcapital.org/microcapital-brief-mr-vijay-mahajan-and-mr-p-n-vasudevan-debate-self-regulation-in-indian-microfinance-industry/

MICROCAPITAL BRIEF: Indian MFIs Agree to Voluntary Credit Code Enforced by Microfinance India Network (MFIN) And Take Equity Stake in Credit Information Bureau, December 29, 2009: http://www.microcapital.org/microcapital-brief-indian-mfis-agree-to-voluntary-credit-code-enforced-by-microfinance-india-network-mfin-and-take-equity-stake-in-credit-information-bureau/