Rachit Khaitan is an Analyst at IFMR Finance Foundation based in Chennai, India, working on understanding rural household financial behavior and the interaction of financial services with household portfolios.
Rapid expansion in the microfinance sector has been credited with advancing financial inclusion in India. This paper addresses what might constitute a loan mis-sale and seeks to inform the use of suitability guidelines for lending to low-income households by microfinance institutions, self-help groups, and various banks.
In order for financial products to help people meet their goals, the products need to fit in with a household's natural cash flows and financial situation.
