Saturday, November 14, 2009

MFIs MAKE LARGE MARGIN

As RBI has mandated that no bank can charge more than the prime lending rate for loans up to
Rs.2,00,000, bank have been working on thin margin but on the other hand, micro finance
institutions (MFIs) charge between 25 per cent and 50 per cent, with their average lending rate
hovering around 30 per cent.

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