Membership Process

Membership Process

The membership of MFIN is open to RBI regulated, NBFC-MFIs.  All applications for the new membership go through a well laid out process including an on-site due-diligence and Board review.  As members, NBFC-MFIs become part of a peer community that shapes the strategic direction of MFIN and the industry as a whole. Members voluntarily comply with the common Industry Code of Conduct and other MFIN regulatory parameters such as reporting data to Credit Information Bureaus and submitting Score Cards based on self assessment criteria
As on 31st March 2016, MFIN has 53 members, diverse in size and spread over 30 States.

Benefits

  1. Self Regulated entities registered with the RBI and functioning within the overall guidelines as stipulated by the RBI
  2. Crediblity due to being part of a network of Institutions regulated by the Apex bank
  3. Greater access to funds from banks and investors
  4. Contributing to strategic policy and providing foresight on the financial inclusion agenda
  5. Access to a Credit Information Bureau environment
  6. Regular updates to members on national and international developments on the microfinance sector
  7. Market intelligence through industry data analytics and insights reports
  8. Access to MFIN events and workshops

Eligibility Criteria:

  1. NBFC-MFI registered with the RBI
  2. Applicant should be a member of the following Credit Bureaus – Highmark & Equifax
  3. Compliance with MFIN Code of Conduct

Documentation required:

  1. Latest audited financials
  2. Memorandum and Articles of Association
  3. RBI registration certificate
  4. Copy of Board resolution for MFIN membership and adoption of MFIN Code of Conduct
  5. Recommendation letter from an existing MFIN member
  6. Copy of RBI inspection report, if any
  7. Sample Loan Cards
  8. Self-certification that Company is in full compliance with all RBI/other regulatory norms/guidelines

Membership fees:

Subscription Fee Structure:

  1. One time Application Fee : INR 1,000
  2. Initial membership Fee : INR 1,00,000

Upon approval of membership:

  1. Annual Subscription Fee for the year: An amount equivalent to 0.034% of Total Gross Loan Portfolio (including managed portfolio), after adjusting for loan portfolios that are 180 days overdue on prorated basis
  2. subject to a cap of ` INR 50,00,000 and a floor of `INR 1,00,000