GENERAL25 Sept 2026
MFIs to seek higher household income threshold for microfinance borrowers
Microfinance institutions may ask for a higher household income limit for microfinance loans. The industry wants the cap raised to Rs 3 lakh a year, to adjust for five years of inflation since it was last hiked. That matters to small borrowers hoping to qualify. They also worry about MDR, or merchant discount rate, on UPI repayments.
Key Statutory Highlights
- Microfinance institutions may seek an increase in the Rs 3 lakh household income threshold for microfinance loans.
- The industry wants the household income threshold raised to Rs 3 lakh per annum to adjust for inflation in the past five years since it was last hiked.
- Microfinance institutions are also raising concerns over MDR on UPI repayments.
Actionable Advice for Taxpayers / Founders:If you run a microfinance business or borrow from one, watch for these industry requests being taken up. Till any change is actually notified, keep following the current income eligibility rules.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: