Like traditional financial services, microfinance companies offer an array of products like loans, spending accounts and much more. The biggest difference is that these institutions focus on delivering those offerings to low-income individuals and underserved communities. These are some of the top microfinance companies to know in India.
Top Microfinance Companies in India
- Fi
- Arohan Financial Services
- Ujjivan Small Finance Bank
- NatWest Group
- Grameen Bank
Top Microfinance Companies in India to Know
Fintech company Paytm is known for its mobile payment services, but the company recently expanded into the microloan sector. In 2022, it partnered with banks and non-banking financial companies like Hero Fincorp and Aditya Birla Finance to offer personal loans through its app. Paytm also facilitates microloan repayments for several larger NBFC companies.
Fusion Microfinance’s client base is women living in rural and semi-urban areas across India. It focuses on serving the “missing middle,” or medium-sized businesses that bridge the gap between micro enterprises and very large companies. Established in 2009 in New Delhi, Fusion MIcrofinance now operates more than 1,300 branches in 22 Indian states.
Non-banking financial company Unnatti is working to serve the unbanked sector of Indian society by making tailored microloans that create financial inclusion. The company has more than 75,000 borrowers across its 38 branches. Unnati is based in Mumbai and operates in two states.
Annapurna Finance began as part of the non-profit Peoples Forum in 2005, making microloans to poor women in the Odisha region. It has since grown into its own entity, registered as a microfinance institution in 2013. Annapurna Finance has nearly 3 million clients and employs 15,000 people across India.
Asirvad Microfinance offers microloans, income generation programs and mid-term loans to people in rural and semi-urban places across 22 Indian states. In Sanskrit, “Asirvad” means blessings from the almighty, and the company says it values the well-being of all in society. Asirvad Microfinance is based in Kerala.
In addition to microloans, ESAF Small Finance Bank also provides mobile banking, debit cards, ATMS and vehicle loans to customers in 24 states. Its vision is to be India’s leading social bank, and its social initiatives include green buildings, robust employee engagement initiatives and the Hrudaya deposit scheme, which allows customers to help fund unbanked and underbanked demographics.
BSS Microfinance provides small ticket, unsecured loans to women from marginalized communities. In addition to loans, the company also offers financial education and holistic support for entrepreneurs and aspiring business owners. BSS Microfinance is a business correspondent of Kotak Mahindra Bank, and is headquartered in Bengaluru.
Spandana Sphoorty’s Chetana program is a joint-liability microfinance loan product that focuses on groups of women entrepreneurs. The loans feature flexible repayment plans and schedules of between 12 and 30 months. Spandana Sphoorty is based in Hyderabad and employs more than 17,000 people.
Grameen Bank is an Indian bank that pioneered the microfinance movement. Since its founding, the bank has worked with underserved communities throughout the country by providing at-home and community services. It also offers no collateral loans to customers.
Mumbai-based Svasti Microfinance focuses on women’s right to finance. Its products are designed specifically for entrepreneurial women working to start their own businesses or grow existing companies. Svasti Microfinance has over 4 million customers and operates 150 branches across India.
Ujjivan is a microfinance bank using technology to serve hard-to-reach populations in India. The company offers unique financial features like micro and gold loans along with more traditional banking services like savings accounts and home loans. Ujjivan also provides dedicated care for rural customers by offering unique services for that population.
Arohan Financial Services is a microfinance company serving households and small businesses in India. The company’s main products are monetary loans tailored to specific populations. Its “Saral” loan is aimed at women who live in low-income areas while the “Bazaar” loan is for small businesses. Besides loans, Arohan also sells term life insurance.
Equitas Small Finance provides banking solutions to financially unserved and underserved customers across India. It has more than 5 million customers and contributes 5 percent of its profit to social initiatives like cancer hospitals and Gurukul schools. Equitas Small Finance was founded in 2007 and has its headquarters in Chennai.
Dvara KGFS provides savings, credit, insurance and investment services in addition to its microloan program. It intentionally builds branches in remote rural areas to increase access to financial services, and even runs a mobile “Branch on Wheels” capable of bringing services to customers in remote deep rural villages.
BharatPe offers financial services and digital payment solutions to small merchants and grocery stores across India. Its microfinance services include low-interest, collateral-free loans to small businesses and unsecured personal loans through its non-banking financial company partners. BharatPe is based in Gurugram.
Belstar supports women’s empowerment by funding loans to small groups of female entrepreneurs. Its “credit plus” model surrounds borrowers with services and connections that promote sustainable livelihoods and job creation. Belstar’s mission is to impact more than 3.5 million women through affordable credit and entrepreneurship by 2025.
Founded as an NGO in 1990 to help small-time traders in Kolkata grow their businesses, Bandhan Bank has grown into a universal bank that continues to work in microfinance but also serves all socio-economic classes across India. It operates more than 6,000 branches and banking outlets across 35 of India’s 36 states. Bandhan Bank employs nearly 80,000 people.
Hyderabad-based Bharat Financial’s mission is to provide financial services to people living in poverty. Since 2019, it has operated as a subsidiary of Indusland Bank, providing microloans, recurring deposits and fixed deposits to more than 10 million customers in 23 Indian states. Bharat Financial’s new initiative called Money Store provides banking services specifically for kirana merchants.
Fi is a money management platform that partners with banks to provide better banking services like credit cards, spending and savings accounts. Some features include no minimum balances or account fees. Fi also includes rewards for purchases made on a spending account. Besides banking, the platform also supports investment options. Customers can purchase exchange traded funds, or ETFs, and U.S. stocks.
NatWest Group is a global financial company with offices in India. It aims to serve families and businesses using best-in-class financial services and technology by operating a group of banks headquartered in the United Kingdom as well as other international locations. These banks offer many services for businesses and individuals consumers.
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