The Microfinance Institutions Network

Micro Finance Institutions Network (MFIN) is the self-regulatory organization (SRO) for the Indian Microfinance industry. It was established in October 2009 with the sole purpose of promoting the key objectives of Microfinance in India and establishing guidelines for responsible lending and client protection in the Microfinance industry. MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance. Currently MFIN member organizations consist of 46 of the leading NBFC/MFIs whose combined business constitutes over 80% of the Indian microfinance sector. As a step towards more stringent self-regulation, MFIN has defined a code of conduct for its members, which focus on fair practices with borrowers and among member organizations. The MFIN code of conduct establishes limits on overall lending at the client level, establishes guidelines for fair collection practices promoting transparency, and standardized recruitment and training practices for member MFIs. The code of conduct encourages data sharing among members, and has established mechanisms for promoting transparency in the industry, such as setting up helplines and formulating a whistle blowing mechanism.