Transparent Pricing Initiative in India: Pricing Data Report
This report by MFTransparency presents findings of the Transparent Pricing Initiative in India. It includes product and pricing data collected from 82 Indian MFIs in 2010.
Transparent Pricing Initiative is a combination of training, interest rate disclosure, education and policy advisory that enables transparent communication between suppliers and consumers of microcredit products. The initiative includes a training workshop for local industry stakeholders, collection and dissemination of pricing information for microloan products within the country and publication of education material tailored to the local context. This report discusses:
- Importance of pricing transparency;
- Evolution, launch and outcomes of Transparent Pricing Initiative in India;
- Calculation of transparent pricing in India;
- Price and delivery cost comparisons;
- Cross-country comparisons of microcredit costs and pricing, including comparison of India with Bolivia, Philippines, Cambodia, Mexico and Bangladesh.
The report states that the pricing information it contains can be incorporated into decision-making by stakeholders at all levels. It suggests that players in the Indian microfinance market use this information to set new industry standards for responsible pricing.
