Multiple MFI Loans Pushed Total Debt Above Rs.3 Lakh Limit
Multiple MFIs have lent to your household without checking the Credit Bureau, pushing your total microfinance debt above Rs.3 lakhs. Each lender should have verified your total existing debt before lending — they failed to do so.
⚖️Your Rights Under RBI Regulations
Total microfinance loan outstanding from all sources cannot exceed Rs.3 lakhs for an eligible household.
Each lender must check CRIF or Equifax before disbursing — failure to check is a violation.
Total repayment from all sources cannot exceed 50% of household monthly income.
Lenders who failed to check bear responsibility for the over-indebtedness situation.
💰 What You Can Recover
You can approach the SRO and RBI for restructuring of excess debt. Lenders who violated may face regulatory action.
⏱ Response Deadline
30 days for GRO response from each lender.
📋Step-by-Step — What to Do
Get your CRIF credit report (free once a year at crifhighmark.com).
Document all MFI loans and total outstanding.
Write to the most recent lender who pushed you over the Rs.3 lakh limit citing RBI/2021-22/112.
File with Sa-Dhan and MFIN requesting intervention for debt restructuring.
File with RBI Ombudsman against each violating lender.
🏛 Where to Escalate If Bank Doesn't Respond
Sa-Dhan + MFIN + RBI Ombudsman
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