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Coming soon: MFI credit bureau

Coming soon: MFI credit bureau

01 Jun 2011
Financial Chronicle

Edition: Mumbai, Hyderabad, Bangalore, Chennai, New Delhi Pg: 08


CONSUMER Information solutions provider Equifax along with six financial institutions has set up a Microfinance Credit Bureau for information sharing among microfinance companies and help them establish a credit history of borrowers. The other partners in the joint venture include Bank of Baroda, Bank of India, Union Bank of India, Kotak Mahindra Prime, Religare Finvest and Sundaram Finance. The initiative aims at lowering the rate of delinquencies as well along with avoiding over indebtedness. “With the Equifax Microfinance credit bureau in place, consumers who may have otherwise been unable to obtain assistance can now establish their credit history and obtain funding to continue their ventures,” said Samir Bhatia, managing director and chief executive officer of Equifax Credit Information Services (ECIS). ECIS is said to be the second such credit bureau in the country after High Mark. MFIs have been under the scanner owing to over lending or usage of strong arm tactics for recovery.