Credit Information Bureau India Limited (CIBIL) has inked a partnership with 31 leading microfinance institutions to start a Microfinance Credit Information Bureau. These 31 MFIs are part of the newly formed Microfinance Institutions Network (MFIN), a self regulatory organisation of NBFC MFIs.
“We have begun work on getting the data of borrowers from these MFIs, which is around 20 million borrowers, and by next financial year the bureau will be ready. The credit bureau will help enable MFIs to assess the credit worthiness and current exposure levels of loan applicants,” said Arun Thukral, Managing Director, CIBIL.
Currently, the Indian microfinance sector is estimated at around 120 million households which translates into a credit demand of Rs 1.2 trillion.