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