Eligible organisations
Non-banking financial companies (NBFCs) or Section-25 companies who are directly or indirectly involved in microfinance activities (including companies providing loans for low-cost housing) can apply for MFIN membership.
Eligibility criteria
Any applicant organisation should satisfy the following requirements:
• A minimum of 60% of total loan portfolio (direct or indirect) should be in micro-loans or micro-housing loans. Micro-loans are JLG/SHG/Grameen loans with a maximum limit of Rs 50,000/- per client and Micro-housing loans have a limit of Rs 3,00,000/- per client.
• A minimum of two years of microfinance operations at the time of applying for membership (Two years of audited financial statements should be available).
• The promoter should be in good standing with the RBI, Banks, the Government and other regulators.
• Resolution of Board of Directors on seeking membership to MFIN and adoption of the MFIN Code of Conduct by the Board
Membership fees
• One time Application fee of Rs. 1,000/- and Processing Fee of Rs 1,00,000/-
• Annual Subscription Fee as may be decided by the Board of MFIN. For the current year, it is 0.05% of the total loan outstanding at the end of the financial year 2009-10.
All membership dues are payable in advance for a financial year (April – March) in full and become due on the first of April each year and are payable before the end of May that year.
Membership approval process
Eligible organisations need to submit an application along with the processing and application fees and a recommendation letter from a current MFIN member. For NBFCs, copy of 6 months’ tax returns filed with the RBI will have to be submitted as well
After receiving the application and required documents, a comprehensive due diligence process will be initiated by MFIN staff/Board. Once membership is approved, the applicant is required to pay the annual subscription fee. Membership will only become effective after payment of the full subscription fee.
Click here to apply to be a MFIN Member!
