The apex body of microfinance institutions (MFIs) today said it is launching a helpline number for borrowers in Andhra Pradesh as an initiative towards self-regulation.

The number (040-40011095) will be active from tomorrow and is expected to benefit more than 9 million customers in state, one of the key markets for the micro-lenders, Micro Finance Institutions Network ((MFIN) said in a statement.

MFIN represents 44 RBI-registered microfinance firms, which are facing a tough time in the state due to stringent regulations brought in by the government here in the wake of suicides by borrowers due to alleged coercive recovery methods.

"The helpline will not only assist the customers to express their concerns and issues, but also provide the 15 RBI -registered NBFCs, which are members of the MFIN-AP chapter, a platform to connect with their customers," MFIN CEO Alok Prasad said.

To make the system transparent, a registration number will be issued to customers, who can avail of the service by providing loan passbook or loan card account number, MFIN said.

MFIN has suggested to MFIs to process customer requests through their database. "Based on the nature of the complaint, the response time to process the client's request will be informed by the respective MFI to MFIN and the customer simultaneously," the release said here.

Customers, if unsatisfied with the response, can raise the issue again with the same helpline number, it said, adding if complaints are made about unregistered entities, they will be brought to the Government's notice.