Key Points
Fusion Microfinance, which follows the Joint Liability Model, disbursed loans to nearly 36 lakh women across India as of FY2023..
The branch manager underlined a list of criteria based on which they disburse loans such as--Any of the family members of the women borrower (husband, father, father-in-law) should own a house, an original Aadhaar card of the borrower, CIBIL score of the borrower or closest family member, and lastly, the loan across all financial institution should not exceed 1,80,000..
According to Workverse founder Chakrabarty, "If the debtor does not experience a rise in income from other sources, he/she will often default," he added, "Majority of the micro-loans borrowers are those pursuing unstable occupations for inconsistent income thereby not being able to pay for loans that did not directly result in financial yield". ..
MFIs are playing a critical role by giving opportunities to those who are at the bottom of the pyramid and mitigating gender inequality by creating women microentrepreneurs," Devesh Sachdev, MD and CEO of Fusion Microfinance said.. RBI's INTERVENTION..
Instant loans and accessibility have been a prime reason for them to take loans from microfinance institutions, the women borrowers who are semi-literate said. . . . View Full Image..
