Lok Sabha Question No. 2499 (UNSTARRED), answered on 2025-12-15
Subject: Microfinance Companies in Rajasthan
Ministry: FINANCE
Asked by: Shri Rajkumar Roat

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 2499

ANSWERED ON MONDAY, 15 th  DECEMBER, 2025/ 24 AGRAHAYANA, 1947 (SAKA)

## Microfinance Companies in Rajasthan

† 2499. SHRI RAJKUMAR ROAT:

Will the Minister of FINANCE be pleased to state:

- a) whether there are any standards or criteria for operating the microfinance companies in the country, if so, the details thereof;
- b) the maximum interest rate at which microfinance companies are providing loans in Rajasthan;
- c)  the  number  of  complaints  received  against  these  microfinance  companies  for  charging  higher interest rates for loans along with the procedure for filing complaints in this regard;
- d) the details of the number of complaints resolved in the said State, district-wise;
- e) the number of microfinance companies operating in Dungarpur-Banswara districts along with the number of  complaints  received  regarding  charging  interest  above  the  prescribed  limit  and  mental harassment of people for non-repayment;
- f) the number of complaints resolved out of the above in the said districts; and
- g) the details of the amount of loan disbursed by the microfinance companies in the country, State/yearwise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- a)  In  terms of  paragraph  8(3)  of  the  Reserve  Bank  of  India  (Non-Banking  Financial  Companies  Microfinance  Institution)  Directions,  2025,  a  Non-Banking  Financial  Company  -  Microfinance Institution (NBFC-MFI) means a non-deposit taking NBFC which has a minimum of 60 percent of its total assets (netted off by intangible assets) deployed towards 'microfinance loans' on an ongoing basis. Further, a microfinance loan means a collateral-free loan given to a household having annual household income up to ₹3,00,000. For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children.
- b)  As  per  Reserve  Bank of India's  (RBI's) guidelines, interest rates are deregulated and Regulated Entities  (REs)  shall  put  in  place  a  Board-approved  policy  regarding  pricing  of  microfinance  loans which shall, inter alia, cover the following:
1. A well-documented interest rate model / approach for arriving at the all-inclusive interest rate.
2. Delineation of the components of the interest rate such as cost of funds, risk premium and margin, etc. in terms of the quantum of each component based on objective parameters.
3. The range of spread of each component for a given category of borrowers.
4. A ceiling on the interest rate and all other charges applicable to the microfinance loans.

Further, it has also been prescribed that interest rates and other charges / fees on microfinance loans should not be usurious and these shall be subjected to supervisory scrutiny by the Reserve Bank.

## c) and d) Information sought is not maintained by RBI.

However,  Self-Regulatory  Organizations  (SROs)  of  the  microfinance  sector,  viz.,  Sa-Dhan  and Microfinance Industry Network (MFIN) collect data on complaints against microfinance companies. As informed by MFIN, in the MFIN-Customer Grievance Redressal Mechanism (CGRM), in the last 1 year (Dec 2024 - Nov 2025), none of the complaints related to charging of higher interest rate was received. As informed by Sa-Dhan, during the last quarter July-September 2025, only one complaint was related to higher interest rate; and got resolved within a month.

- e) and f) As reported by RBI, numbers of NBFC-MFIs operating in Dungarpur and Banswara districts of  Rajasthan  are  13  and  12  respectively.  Information  on  number  of  complaints  received  regarding charging interest above the prescribed limit is not maintained by RBI.

Additionally, as informed by MFIN, in Dungarpur-Banswara districts, during the period Dec 2024 to Nov 2025, no complaints  were received  regarding  excessive  interest  charges  or  coercive  recovery practices.

- g) As informed by MFIN, the amount of loan disbursed by the microfinance companies (NBFC-MFIs) state wise in FY 2023-24 and FY 2024-25 is as below:

| Disbursement by NBFC-MFIs (Amount in ₹ Crores)   | Disbursement by NBFC-MFIs (Amount in ₹ Crores)   | Disbursement by NBFC-MFIs (Amount in ₹ Crores)   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| State                                            | FY 2023-24                                       | FY 2024-25                                       |
| Andaman &Nicobar Islands                         | 8.83                                             | 12.67                                            |
| Andhra Pradesh                                   | 1,159.80                                         | 1,450.84                                         |
| Arunachal Pradesh                                | 51.99                                            | 88.16                                            |
| Assam                                            | 906.16                                           | 2,141.32                                         |
| Bihar                                            | 17,417.84                                        | 16,315.44                                        |

| Chandigarh                         | 3.05        | 3.74        |
|------------------------------------|-------------|-------------|
| Chattisgarh                        | 2,284.56    | 2,355.20    |
| Dadra &Nagar Haveli, Daman and Diu | 0.31        | 1.10        |
| Delhi                              | 29.99       | 20.69       |
| Goa                                | 65.37       | 59.34       |
| Gujarat                            | 3,207.81    | 2,914.43    |
| Haryana                            | 1,269.28    | 1,281.85    |
| Himachal Pradesh                   | 76.33       | 84.03       |
| Jammu &Kashmir                     | 54.45       | 54.75       |
| Jharkhand                          | 3,410.00    | 3,230.81    |
| Karnataka                          | 11,338.36   | 11,042.11   |
| Kerala                             | 2,198.89    | 2,042.52    |
| Madhya Pradesh                     | 7,174.24    | 7,425.83    |
| Maharashtra                        | 7,766.91    | 8,881.34    |
| Manipur                            | 0.95        | 0.49        |
| Meghalaya                          | 8.05        | 26.57       |
| Mizoram                            | 4.69        | 1.37        |
| Nagaland                           | 2.84        | 17.99       |
| Orissa                             | 6,688.57    | 5,535.40    |
| Pondicherry                        | 197.58      | 197.96      |
| Punjab                             | 1,123.15    | 1,177.30    |
| Rajasthan                          | 4,633.34    | 4,203.29    |
| Sikkim                             | 9.00        | 13.98       |
| Tamil Nadu                         | 12,803.83   | 12,126.81   |
| Telangana                          | 462.91      | 1,147.91    |
| Tripura                            | 419.06      | 469.21      |
| Uttar Pradesh                      | 14,904.33   | 14,219.81   |
| Uttarakhand                        | 499.31      | 525.56      |
| West Bengal                        | 6,379.41    | 7,050.09    |
| Other                              | 1,226.07    | 29.34       |
| India                              | 1,07,787.29 | 1,06,149.27 |