Why in news Financial Services Secretary M. Nagaraju cautioned microfinance institutions (MFIs) to avoid reckless lending practices that ...
Why in news
Financial Services Secretary M. Nagaraju cautioned microfinance institutions (MFIs) to avoid reckless lending practices that could hurt borrowers.
Poor lending can make it hard for Self Help Groups (SHGs) and Joint Liability Groups (JLGs) to repay loans, which could harm the MFIs.
Many borrowers lack financial knowledge, so MFIs should lend carefully and support their understanding.
The SHG-Bank Linkage Programme has helped about 10 crore households with loans totaling ₹2.6 lakh crore.
The government is promoting the Lakhpati Didi Yojana to help women in SHGs become successful entrepreneurs.
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