It was reported that some MFIs not only charged excessive interest, but had also loaded many other components to the overall cost. MFIs need to remind themselves, that while dealing with vulnerable sections of the society, the argument of “caveat emptor” does not always hold good.
6  BIS central bankers’ speeches  Credit information Absence of comprehensive credit information has been a handicap in the development of the sector. The multiplicity of financing institutions acting independently increases the level of information asymmetry among them, which may lead to delays in sanction, double financing, etc.