Before we delve into the subject of micro-finance and learn about best microfinance companies in India, tell me how many of you have actually heard about the word? Are you acquainted with this branch of banking and financial services?
KEY TAKEAWAYS OF THE ARTICLE
- What is meant by microfinance?
- Top 10 microfinance companies in India 2019
- Services offered by these companies
- Top microfinance company’s figures – disbursed loans & members
- Latest on the block- Emerging New MFI’s in India
Much to the surprise of various people, the branch of banking and finance sprouts its roots to various other verticals – one of them being Microfinance.
This service is extended to low income or unemployed individuals who otherwise have no access to financial support.
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With the help of top MFI’s, the low earning strata of society not only gets the opportunity to save money but also to borrow and claim insurance, and start a life that is independent of any family alliance and purely based on hard work and dedication.
This help is provided in the form of micro credit, small loans or loan against fixed assets.
The Indian Microfinance sector over the years has shown staggering growth owing to its major microfinance companies.
The Sa-Dhan’s “Bharat Microfinance Report – 2016” pointed out that the Indian microfinance sector raked in Rs.64000 crore, making it a US $10 billion industry.
Here is the list of top 10 microfinance companies in India that are pioneers of the change in our society.
#1. Asmitha Microfin Ltd.
Created to bridge the gap between “poverty and comfortable style of living”, this Hyderabad based company was established in the year 2002.
Their structure is laid out in a manner that provides microfinance services to poor rural women who wish to create a life of their own.
Asmitha Microfin Ltd. have served over 1 million members with loan portfolio of Rs1240 crores. They currently operate across 363 branches across the country.
#2. Grama Vidiyal Micro Finance Pvt Ltd (GVMFL)
GVMFL is a wholly owned subsidiary of IDFC Bank Ltd.
Their main motive is to empower women by enabling them through money that leads them to a successful and financially independent life.
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Headquartered in Tiruchirappalli, the company consists of over 2200 employees.
Their business numbers (as on Feb 2017) show that they have touched almost 1.24 million people with Rs.13.36 MN loan disbursed.
Established in 2005, this leading microfinance company began its operations as NBFC with the motive to provide end to end financial services to backward people who otherwise do not enjoy assistance from any financial institution.
Ujjivan’s gross loan portfolio stood at the figure of Rs.5389 crores in 2016 with more than 2.9 million active customers.
#4. Spandana Sphoorty Financial Ltd.
Registered as a non-deposit accepting public NBFC, Spandana Sphoorty Financial Ltd. is one of the biggest microfinance companies in India.
Their business is to provide micro credit to women of low-income houses that help them in setting up their own business and battle against the ills of low finances.
They provide loans, business loans and income generation loans with gold as guarantee.
This year they reached out to 176.3 billion people with Rs.276 MN as cumulative disbursements.
#5. Bhartiya Samruddhi Finance Limited (BSFL)
Counted as the first microfinance company in India, BSFL was established in 1996.
Also known as BASIX India, their idea is to provide means of livelihood promotion services to rural people to make them financially independent through microfinancing and micro credit.
In order to facilitate every person under one umbrella, they function in accordance with BASIX Livelihood Triad strategy which includes forming groups of people and making them function effectively.
They have reached out to over 40k villages till date.
#6. Utkarsh Micro Finance Pvt Ltd
Registered as per Reserve Bank of India, Utkarsh Micro Finance is yet another feather in India’s growth.
Headquartered in Varanasi, this company’s model is based on multiple products and services formulated to cater to myriad needs of underprivileged families and under nourished kids.
Their micro enterprise loan extends to 23 branches with Rs.1745.66 MN as total disbursement.
#7. Bharat Financial Inclusion Limited
Abbreviated as BFIL, this 1997 established India’s leading MFI is a non-banking finance company licensed by the RBI.
The company is India’s second largest Indian microfinance company and operates in over 13 states with more than 9600 employees.
This year their gross loan portfolio stood at Rs.9150 crore with over 67 lakh members from non-AP state.
#8. Share Microfin Limited
One of the largest microfinance companies in India, SHARE started its operations back in 1989 to uplift the neglected sections of society.
Their agenda is to make poor self-sufficient, particularly women, by availing them loans and encouraging them to make a life on their own.
Their company currently boasts of more than 3.77 million members from leading states such as Karnataka, Chhattisgarh, Delhi, and Madhya Pradesh and so on.
With headquarters in Hyderabad, their total outstanding portfolio stands around Rs1540 crore.
#9. Shri Kshetra Dharmasthala Rural Development Project
Found on the very idea of inclusive rural development, this company has been ushering financial stability in the lives of unprivileged through loans, insurance and pensions.
Not only have they ensured services for women, but they also provide multiple programs under agriculture division along with scholarship for little ones.
They have expanded their services to almost 25000 villages in India with over 3,722,000 members. Their outstanding loan this year is around Rs.6381 crore.
#10. CreditAccess Grameen Limited
Started in 1999 as an NGO with the aim to foster Indian women for their better tomorrow this institution shaped out to be a NBFC in 2007 to provide microfinance services.
Their products and services are extended to rural poor households especially to women in over 96 districts.
This year they impacted over 1,632,827 members with Rs.3025 crore as current outstanding portfolio.
Wrapping it up
These are very few notable microfinance companies in India that are not only taking the country to new heights but encouraging rural households to make a life of their own – a life that they might have never even dreamt of.
Apart from the above listed companies, there are new microfinance companies too that are adding to the ever evolving scenario of finances in India. This includes:
- Future Financial Services Ltd,
- Mahasemam Trust,
- Rashtriya Seva Samithi,
- Samhita Community Development Services,
- Saija Finance Private Limited, and
- Village Financial Services Pvt Ltd etc.
- Belstar Microfinance Private Limited