Hyderabad, November 02: In a bid to restrain multiple Micro Finance Institutions (MFIs) from granting loans to the same set of borrowers, the state government is setting up a Credit Bureau containing records of all borrowers across the state.
“It will include combined data provided by MFIs and SHGs and will serve as an effective tool to counter multiple lending,” R Subrahmanyam, principal secretary, rural development, told Express.
The database is expected to be activated from November 6 and will include ration card details of borrowers, the total loan burden on individual households and the date of loan maturity.
As of October 30, 223 MFIs across the state have submitted applications of which 29 have completed the registration. As per the information furnished to the registration authorities, there are 9.69 million borrowers to whom the MFIs have lent Rs 12,269 crore.
The borrowers include 3,86,602 SHGs. The MFIs have so far collected Rs160 crore as principal amount along with an interest of Rs 1,297 crore.
“We will not verify the accuracy of the data furnished by them (MFIs) but we will make the disclosures public by publishing it in 30,000-plus village samakyas,” Subrahmanyam explained adding that necessary action would be initiated if borrowers found the information provided to the registration authorities was false and incorrect.
Meanwhile, the recently issued Ordinance on MFIs is likely to be made an Act in the assembly session this month or during the Budget session in February.
–Agencies