Microfinance

Virutcham Microfinance comments on Malegam Committee Report

By R.Kanagavel, General Manager, Virutcham Microfinance

Given below are the suggestions and comments, given by the executive committee of directors at Virutcham Microfinance on the Malegam Committee Report.

  1. The entry point qualification that all NBFC-MFIs should have a minimum Net Worth of Rs 15 Crores should be removed and the existing net worth requirement of Rs.2 crores should be continued.
  2. The recommendation that loan should be given to a borrower whose annual income does not exceed Rs.50,000/- should be removed and the existing eligibility criteria should be continued.
  3. Similarly the ceiling on maximum loan that can be given to a SHG member recommended by the committee as Rs.25,000/- should not be accepted. Instead the existing ceiling of Rs.50,000/- should continue.
  4. The weekly collection should be discouraged and only fortnightly or monthly collection should be encouraged.
  5. The Capital Adequacy Ratio to be maintained should be fixed as 12%.
  6. All NGO-MFIs should be registered with NABARD invariably without any exemption.

For Complete Summary of Reactions on Malegam Committee Report – Click here.

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