Micro Finance Institutions Network (MFIN), the Industry Association for the Microfinance sector, launched a helpline for microfinance clients in Andhra Pradesh on Wednesday, February 3rd. The helpline will benefit over 9 million poor borrowers in Andhra Pradesh. Helplines for customers in other states are on the anvil and will be launched in a phased manner.
The helpline is part of MFIN’s continuing efforts towards promoting customer –centricity and stronger self-regulation. MFIN membership currently consists of 46 of the leading NBFC-MFIs whose combined business accounts for over 80% of the industry.
The objective of the helpline is to resolve issues related to membership, loans, repayments, and staff behavior, for MFIN member organizations. However, if complaints are made about unregistered organizations operating in the same geography, it will be brought to the attention of the concerned government departments for necessary action.
The helpline number will be operational and available to MFI customers six days a week from 9:00 am to 5:00 pm, except on Sundays and national holidays. In order to make the system efficient and transparent, customers or their representatives will be asked to provide a valid loan passbook/loan card account number when they call the helpline. A call reference number will then be issued to the customer and customer information and complaints will subsequently be recorded and shared with the respective MFIs. The call reference number can then be used by customers for follow up questions or requests. A customer can raise an issue again with the helpline number if he/she is unsatisfied with the initial response from the MFI. MFIN will ensure that all customer concerns are addressed satisfactorily.
In order to maintain the highest levels of transparency in this process, MFIN will monitor the number and status of complaints and will periodically make necessary information available in the public domain. The Helpline is a big step forward in MFIN’s commitment towards promoting greater transparency and accountability in the industry.
According to Mr. Alok Prasad, the CEO of MFIN, “The Helpline is our way of saying to all stakeholders that we care; that we want micro-finance customers to be assured of a fair and transparent mechanism for redressal of their grievances