Don8217;t burden borrowers: Rangarajan

Micro finance institutions need to keep a level consistent with repaying capacity of the borrower,Prime Minister8217;s Economic Advisory Council Chairman C Rangarajan said today.

8220;It is necessary to ensure that burden on the borrower is not such as to make him default. It is necessary for micro finance institutions to keep the overall cost to borrowers maintained at a level that is consistent with their repaying capacity8221;,Rangarajan said while addressing a conference on 8216;Financial Inclusion8217;,organised by business school Great Lakes Institute Of Management at Manamai,about 45 kms from here.

It was necessary for micro finance institutions to separate the 8216;pure interest8217; costs from other costs charged from borrowers,he said.