Banks raise loan costs for MFIs

With the cost of money rising and the cap on what MFIs can charge intact, microlenders are facing a tough time

..... According to the latest Reserve Bank of India (RBI) data, bank lending to micro-credit, comprising loans to self-help groups and MFIs, fell to Rs. 21,000 crore in December 2011 from Rs. 28,820 crore in the previous year........

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