A journey that unleashes the potential to change lives and fortunes.
Microfinance lending has played a significant role in furthering financial inclusion in India. Microfinance lending, as a business model, has existed in India for many decades, but has shown exponential growth only over the last decade, after the introduction of a strong regulatory framework in 2010. We commenced our operations in this sector in 2009. Under this sector, we work with Originator Partners which are MFIs and companies that act as business correspondents in the microfinance sector, and provide microfinance loans to under-served individuals.
Our underwriting guidelines for this sector focuses on joint liability group (JLG) format of lending, under which multiple borrowers (usually women) come together to form a group to borrow, and generally assume a joint liability to repay the instalments of other borrowers in the group, in the event of a default by any member in the group. We also intend to launch a dedicated microfinance business through Pragati that will disburse loans directly to microfinance borrowers.