Kolkata: Village Financial Services (VFS) has hailed the measures announced by the Finance Minister to facilitate loans to 25 lakhs borrowers through MFIs.
Speaking on this development, Kuldip Maity, MD & CEO of Village Financial Services (VFS) said, “We welcome the initiative announced by the Hon’ble Finance Minister Smt. Nirmala Sitharaman to facilitate loans to bottom of the pyramid borrowers through microfinance institutions. The move will benefit both the NBFC-MFIs and their borrowers in these tough times as the disbursements by MFIs have taken a hit because of cash flow issues which eventually left borrowers in distress as they were unable to carry on their income generating activities due to lack of funds. We appreciate that the government has recognised the need of such borrowers. The measure will help restore the disbursements by MFIs and the marginalized borrowers who are in search of emergency loans to resume their business operations hit by the pandemic, will be benefitted with funds at lower rates.”
“Though we believe there is room for more as the MFI industry caters to around 6 crore borrowers across the nation and are hopeful that Government will expand this facility to cover large number of borrowers,” he added.