An NBFC-MFI is a non-deposit taking NBFC, with Minimum Net Owned Funds of Rs.5 crore (for NBFC-MFIs registered in the North-Eastern Region of the country, it will be Rs. 2 crore) and having not less than 85% of its net assets as “qualifying assets”.
Qualifying assets and lending limits
Qualifying assets are loans provided by the NBFCs that shall meet certain specifications. Loan disbursed without collateral by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs. 1, 00,000 or urban and semi-urban household income not exceeding Rs. 1,60,000 and total indebtedness of the borrower does not exceed Rs.1,00,000 will be a qualifying asset. Loan, if any availed towards meeting education and medical expenses shall be excluded while arriving at the total indebtedness of a borrower.
