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MFIN Definitions

MFIN India has provided the following metrics and guidelines to be published alongside MFTransparency’s transparent pricing data in India.  Please contact MFIN at [email protected] with any questions.

  • MFIN MFI Earning: This is equivalent to APR (int + fees). MFI earning excludes taxes and the insurance premium collected by the MFI as both the components are transferred by the MFI to the government and the insurance provider completely.
  • MFIN Cost to Borrower: This includes all costs levied on the customer for the loan including government taxes and the insurance premium passed on by the MFI to the respective agencies.
  • MFIN Transparency Index: This shows the annualised quoted nominal interest rate / the calculated APR (Int)
  • Compliance with RBI Guidelines on Interest Method: If the MFI mentions the interest rates using a declining basis method on the Passbook / Loan Cards / Loan Agreements
  • Compliance with RBI Guidelines on Processing Fees: If the MFI mentions the Loan Processing Fees (maximum = 1%) on the Passbook / Loan Cards / Loan Agreements
  • Compliance with RBI Guidelines on Insurance Premium: If the MFI mentions Insurance Premium on the Passbook / Loan Cards / Loan Agreements