For the first time in history, true-cost microloan product pricing data for the Indian microfinance market is now publicly available.
MicroFinance Transparency has completed an analysis of microloan pricing in India and has made the results available on it’s website. MFTransparency will present an analysis of the data as well as other findings of the Transparent Pricing Initiative in India at an industry conference in Mumbai on February 25, to be followed by an internal conference held by MFTransparency, the Reserve Bank of India (RBI) and the College of Agricultural Banking (CAB) in Pune on February 28.
Download the report on pricing data of India Microfinance Companies
at the link below.
Loan Pricing Data of Indian MFI’s
Chuck Waterfield, CEO of MFTransparency, said on the occasion of the launch “ We would like to congratulate the 82 participating microfinance institutions for this show of commitment to transparent pricing. The microfinance industry in India recognized the importance of transparent pricing and asked our assistance in early 2010. It has been inspiring for our team to work alongside them and facilitate this process.” Data submissions on the part of these institutions account for approximately 80% of the estimated total Indian market measured by gross loan portfolio and 77% of active borrowers. Comprehensive analysis of this dataset, as well as explanations of the calculations used and their relevance in the Indian microfinance market are available in the India Pricing Data Report.
Key findings of the Pricing Data Report include analysis of pricing by institution type, loan purpose and the relative importance of different fee types, insurance charges and compulsory savings requirements. The report also delves into the predominance of different product characteristics such as loan purpose, lending methodology and target demographics by gender and urban/rural focus. An in-depth section on costing compares dynamics of the Indian market as a whole with those of some of the most advanced microfinance markets internationally, including Bolivia, Bangladesh and Mexico. Featuring graphs from the online dataset, this analytical report highlights the most valuable insights from the Transparent Pricing Initiative in India.
One of the central aims of this data launch is to engage all stakeholders in industry-wide discussion. “It is our hope that this data will serve as a new foundation of information on which the microfinance industry can build transparent pricing practices,” states MFTransparency Vice President Alexandra Fiorillo. “We look forward to working with all who undertake this cause, both within the Indian market and the international microfinance industry.”
Transparent Pricing Initiative
The Transparent Pricing Initiative in India was launched in April 2010 and the majority of the data collection process was completed by September, thanks in part to the efforts made by the Microfinance Institutions Network (MFIN) to involve their membership in the process. The success of this project reflects the longtime commitment of the Indian microfinance industry to transparent pricing and client protection.
The publication of this data is a major step forward in the Indian microfinance industry’s ongoing efforts towards greater transparency and consumer protection. We hope to see the Transparent Pricing Initiative in India serve as a catalyst for further developments in responsible microfinance, both in India and in microfinance markets around the world.
Source : mftransparency.org