Kolkata: In a pre-budget recommendation, Kuldip Maity, MD & CEO of Kolkata-based MFI Village Financial Services (VFS) has requested the government to create an equity support fund for lending to NBFC-MFIs at lower interest rates.
He said, ‘Hit by the COVID-19 pandemic, the bottom of the pyramid borrowers need increased credit flow from the financial institutions to keep their income generating activities running. Being the primary source of their funding, microfinance institutions would play a vital role in meeting their credit demand. But MFIs also need funds for onward lending. Therefore, the proposed special fund for the MFIs will eventually benefit the poor and marginalized who are in need of funds to keep their business running as they will have access to more credit at lower rates.’
