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Abhay Sangal
Aparna Agarwal
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Shubham Manchanda
Bhartiya Micro Credit
BHARTIYA Micro Credit (“BMC”) is a microfinance company registered & licensed as Non-Profit Making
Company (Non-Deposit taking) under section 25 of the Companies Act, 1956 and is exempted from the provisions of
Chapter III B of the RBI Act, 1934. As per the new Companies Act, 2013, Section 25 has now become Section 8.
Bhartiya Micro Credit or BMC aims at providing financial assistance to the poor from rural and semi-urban families
to strengthen their roles in society. A family is an important institution in Indian society. Just like a potter shapes the
clay into a desired pot model, a woman is entrusted to shape the future of her family. She is considered as one of the
pillars. BMC believes in strengthening the role of a woman in her family by providing various means of livelihood
and assistance she would need in establishing herself as a micro-entrepreneur. Thus, strengthening her role in the
society as a whole.
Main focus of the organization is to enhance the income of households and empower the role of women in society. It
is important to mention here that income of the households has increased to a certain extent and most of the clients
are now entitled for second cycle of loan, therefore, the average loan size will improve by about 30%. However,
there is a large portion of the population who are yet to be covered under financial inclusion, leaving much scope to
expand our operations. The loan amount is utilized for various income-generating activities like small shop, small
trade, animal husbandry, pedal rickshaw, e-rickshaw, etc.
Vision
To build a society where all have equal and sufficient economic and social opportunities to improve their standards
of living, and where they can contribute productively towards the overall development of the country. At the same
time, it seeks to achieve a transparent and sustainable institution by providing financial services to more than two
lakh clients by March 2018, while operating with fast track growth model and innovative financing strategy.
Mission
To provide equitable access of financial and allied services to the poor women living below poverty line and lower
income households to enhance their quality of life in a sustainable manner.
Philosophy
Their philosophy is to involve the individuals and communities in creating social change where it is most needed.
We believe that by being the catalyst for change and development, we can enable individuals to rise above limiting
circumstances and work towards a better quality of life.
Products Offered
Programs:
Solar Charkha Model
Major Focus:
1. Developing a scalable and growing business that covers a significant number of poor
households while maintaining portfolio and service quality. In 6 years BMC intends to serve
more than 50,000 families. Providing financial resources to enable poor women of rural, semi
urban and urban communities to come out of poverty and get connected with formal financial
institutions. BMC's ambition is to ensure that at least 50% of people who enter the program
cross the poverty line within 5 years of participation in the program
2. Customized Products: BMC has designed loans with small repayments that correspond to
wage structures, consumption and income generating activities to prevent emergency distress
sales. The first loan granted is always relatively small and is used to inculcate credit discipline
and collective responsibility.
3. Focus on Women: BMC works exclusively with women because they are the most
marginalized among the poor and because they tend to invest the majority of their income into
the household and for their children.
VISION STATEMENT
Empower women of weaker sections of the society and integrate them with the mainstream through financial
inclusion in an efficient, equitable and transparent manner and ensure their access to better livelihood, health and
education.
MISSION STATEMENT
To build a professionally managed Microfinance institution that is able to achieve a healthy amalgamation of social
and financial sustainability through economic empowerment as well as employment generation and
entrepreneurship amongst the economically backward sections of the population in India.
JagaranMicrofin Private Limited is a wholly owned subsidiary of GTFS Multi Services Limited and was established
with the distinct aim of providing a wide range of financial services, especially in the backward and rural areas.
Incorporated on 12th January, 1993, as a Category B Non-banking Finance Company (converted as NBFC on
18.03.1998) registered under RBI to promote microfinance business. Subsequently, the name was changed to
“JagaranMicrofin Private Limited”. Jagaran commenced its microfinance operations on December, 2010.
Jagaran follows the “Joint Liability Group (JLG) Model” known as “Grameen Model” for lending of micro credit to
bottom of pyramid (BoP) people and has been serving more than 2,14,000 active members.As on 31st December
2017 Jagaran offers its services through a network of 101 branches spread across 27 districts in five States.The
Gross loan portfolio has grown from Rs.6.41Crores in FY2010-11 to Rs.148.06Crores in FY2016-2017. The Average
loan size is Rs.17,799/-.
Jagaran also acts as a Business Correspondent (BC) to IDBI Bank and manages total Loan Outstanding of Rs.28.36
Crores.
Jagaran has been playing an important role in empowering women to achieve their own identity and enhancing
their daily livelihood. This new phenomenon has also given economic power in the hands of women for which they
were earlier totally dependent on males. Economically independent women feel more confident about their
personal lives. Microfinance has been considered an important development policy that aims to reduce poverty,
vulnerability and inequality. Organizations explicitly perceive microfinance as a tool to fight for women’s rights and
independence. Coming up with the objective of financial viability, the organization has brought a positive impact in
their lives.
Products Offered
However, Jagaranmicrofinance founder bites the dust in differences with its investor. After MFI poster boy
VikramAkula of SKS Microfinance and ShubhankarSengupta of Arohan Financial Services, Managing Director
AlokBiswas makes an abrupt exit in June 2017.
Hindusthan Microfinance Private Limited
Hindusthan microfinance pvt. ltd. (hmpl) is a new urban microfinance institution, which aims at offering credit and
other financial products to the urban poor in Mumbai. Hindusthan microfinance pvt. ltd. (hmpl) is a new urban
microfinance institution (mfi), which aims at offering credit and other financial products to the urban poor in
mumbai.
Hindusthan Microfinance Private Limited is a Private incorporated on 27 July 1996. It is classified as Non-govt
VISION STATEMENT
To become the best financial service provider in India by providing financial services in a sustainable and socially
responsible manner to the low income sections of the society.
MISSION STATEMENT
To provide financial services to 1 million low income clients by 2020, through innovation driven cutting edge
financial solutions.
Business Snapshot
PRODUCTS OF HINDUSTHAN MICROFINANCE
DESIGN OF PRODUCTS
DigamberCapfin Ltd.
April 1995. The company aims to provide support services to the marginalized sections in society, particularly to
poor rural and urban women. By providing them income generating loans and business development services, DCL
reaches out to help these women build productive microenterprises, thereby contributing to the development of
sustainable communities.Focus of the company is on micro finance market only.DCL follows group based lending
approach with a joint liability within the center. The group consists of 05 to 10 members to open a new center. DCL
operations are spread in 05 states namely Madhya Pradesh, Rajasthan, Maharashtra, and Gujarat& Chhattisgarh
Vision Statement
The company’s vision is to be a world-class (leading) financial services organization that provides financial products
to the economically challenged people, helping them generate higher incomes, and earn better living.
Mission Statement
The main mission of our company to provide Micro Loan to the poor working women in rural & urban areas at
minimum rate of interest so as to provide them easy access to funds required to carry out their entrepreneurial
abilities. Also their mission is to build an institution which is best in class in all aspects: customer service,
innovation, work efficiency, work place engagement, leadership and reputation in the society.
Working Pattern
• Area Survey:The company’s aim is to provide micro loan to needful only female member. To accomplish this,
they first conduct area survey in an identify areas. Before finalizing a particular area they evaluate that area
• Projection Meeting: After finalizing a specific area, their Relationship Officer conducts some meeting with
female members. In these projection meeting he describe about company mission, vision and he also
• KYC Collection: All female member who are agreed to take loan, are then told about required document lists
• KYC Screening: After taking the KYC a Branch Manager and HUB Department cross verify all the documents.
• Group Formation: A Relationship Officer form a group of 5 female to create a center of at least 12 female.
• House Visit: A Relationship Officer / Branch Manager conduct a randomly House Visit to identify their loan
• Credit Evaluation (Credit Bureau Check): The institute also checks customer’s credit history by using High
Mark Process. This is also an important step to filter our fake customers.
• CGT (Compulsory Group Training): Their Relationship Officer conducts 3 days training session for the
• GRT (Group Recognition Test): They also conduct member’s training where they cross check the female
members given information and also check the offered product knowledge which is given by our Relation
Officer.
• Loan Sanction: After clearing all above process the loan is sanctioned.
• Loan Disbursement: A HUB Officer /GRT Officer disburse sanction loan to each female member by capturing
a photo with having a company background banner or any other evidence. HUB Officer /GRT Officer also
• Center Meetings (Collection): A Relationship Officer conducts a mandatory weekly meeting. During these
• Delinquency Management: They have a separate process to recover the all due amount.
Details of Loans Offered
Recent Achievements
Following are few recent news reports that indicate the growth of DCL in the sector of MFI:
• NEW BENCHMARK of 200 Crore Crossed: After demonetization when the entire MFI sector faced losses,
DCL has crossed Rs 200 crore AUMas on 30th Sept 2017 with the view of closing it approximately near to
274 Crore by March 31st, 2018
• BLR Rating: In 2017, BLR rating of the company stands at BBB Minus whereas the outlook is stable.
ASA International India Microfinance Ltd
ASA International India Microfinance Limited (ASAI-INDIA), a division of ASA International providing microfinance to
the urban and rural people. We are registered under RBI as NFBC. Our products include Primary and Special loans
to the women especially at the bottom of the pyramid in order to make them independent.
They have more than three decades of experience in the sector of micro finance and currently operating in five
states in India including West Bengal, Assam, Bihar, Tripura and Uttar Pradesh. Our globally accepted low cost
sustainable ASA strategy remained relevant in the current “margin cap” regulation. The current infrastructure of
the company is able to meet the market demand and pave the way for further growth.
Vision Statement
To create a poverty free society.
Mission Statement
To reduce poverty and improve the quality of life of the economically challenged by providing qualitative and
responsive microfinance services in an innovative and sustainable way.
Operational Methodology
ASA India follows the globally appreciated and accepted ASA methodology: taking into consideration low cost
sustainable model. This low cost methodology of ASA gains further relevance in the margin cap environment.
The uniqueness of ASA methodologies are as follows:
*Flexibility of group formation/ No bindings on group guarantee
*Simplicity and transparent system
*Low-costs management
*Standardization
*Delegation of authority in the field level
*Innovative staff recruitment and on-the-job (each one-teach one) training
*Simple and shorter loan processing, less waiting time for the borrower
*Written manual
*Strong monitoring and supervision
*Standard and low cost structure of furniture, fixture and overall management costs
*Donors free sustainable growth, high ROA and ROE. While the loan is sanctioned to individuals, who are a part of a
group, but the collections are done through group meetings
Loan Products and Features
BC and Partnership Models
Operational and Financials
ICRA Rating
ICRA has placed the “[ICRA]BBB-“ (pronounced ICRA triple B minus) rating to the Rs. 160 crore1 term loan of ASA
International India Microfinance Ltd. (ASA)2 on watch with negative implications. The rating action follows the
likely adverse impact of recent demonetization on ASA’s liquidity and asset quality indicators. The on-going
currency shortage, disruption in borrowers’ cash flows, and the possible worsening of credit culture--following
rumours of loan waivers in certain states--pose a threat to asset quality in the nearterm. At the same time, steps
undertaken by individual NBFC-MFIs as well as M-Fin (Microfinance Institutions Network, the Self-Regulatory
Organisation for NBFC-MFIs) to create awareness about MFI operations and contain the contagion risk could help in
managing the risk to some extent. While ASA’s collection efficiency was less impacted in November (total recovery
rate of 97% in November 2016 collection rates post demonetisation being around 90%), the sustainability of the
same would be critical for ASA to be able to maintain its credit profile.
Adhikar Microfinance Pvt. Ltd
Mission: With commitment, integrity and transparency, we provide financial and related services in a
sustainable manner to enable the poor to achieve social equity and economic empowerment
Vision: Be the first choice resource in improving the quality of life of 5 lakh clients and their families by
2020.
Promoters: Adhikar Microfinance is led by Mr. Mohammad Nooruddin Amin, an Ashoka fellow, with an
experience of 22 years in the development sector and 14 years in the area of microfinance.
Products
1. Income generation Loan
2. Water Loan
3. Low Cost House Building
4. Energy Loan
5. Micro-Insurance Pension
Areas of Operation
Key Financials
Conclusion
From the findings of the different micro finance industries it is clear that ASA International India Microfinance
Limited has the greatest presence across 6 states followed by Digamber Capfin. There is not much of a difference
in the products and services offered by the different firms as all are into Micro-finance and all are dedicated to
some particular product or project. Loans are the main products for these firms may be in a particular area or
program.
All these MFI’s have substantial level of financial partners that help them to fulfill the demands of the people and
also getting the maximum reach to the grass root level for which these MFI’s work for.
The share holding pattern is quite different in these firms as some of them have majority of the shares with just the
The organizational structure of all the firms is well established and they have board of directors who look over the
Overall all these firms are working in rural India mostly and trying to get financial literacy to the bottom of the
pyramid such that they are not mugged by individual lenders. The number of MFI’s is growing at a greater pace
now-a-days as more and more people are getting connected and educated.