MFI Processing Fee Charged Above 1% Limit
Your MFI has charged a processing fee exceeding 1% of the loan amount (inclusive of taxes). This is the RBI-mandated ceiling for microfinance loan processing fees.
⚖️Your Rights Under RBI Regulations
Processing fee for microfinance loans cannot exceed 1% of the loan amount, inclusive of all taxes.
No other fees (documentation fee, membership fee, centre fee) can be charged outside this 1% cap.
💰 What You Can Recover
Refund of processing fee amount exceeding 1% of loan amount.
⏱ Response Deadline
30 days for GRO response.
📋Step-by-Step — What to Do
Calculate 1% of your loan amount. Compare to what was actually charged.
Write to GRO with calculation citing RBI/2021-22/112.
File with SRO and RBI Ombudsman if refused.
🏛 Where to Escalate If Bank Doesn't Respond
RBI Integrated Ombudsman + Sa-Dhan / MFIN
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