Top Odisha Microfinance Bank for Loan in 2022-Microfinance term relates to a small amount of credit facility offered primarily to the low-income group, unbanked and marginalized people in rural and semi-urban areas .
The microloans support livelihoods in the rural areas where banks are very far and access to formal banking services is remote. Microfinance helps rural communities, women and people who are involved in agricultural and small business activities.
Top Odisha Microfinance Bank for Loan
Top Odisha Microfinance Bank for Loan in 2022-Microfinance companies are non-banking finance (NBFC) companies registered with Reserve Bank of India (RBI) that offer short term loans to people at lower interest rates than primary lenders.
They handhold people with their credit needs like a friend in need and also teach them basic savings & finance skills. Microfinance companies go-ahead to provide loans for personal consumption like house appliances, mobile and cycle loans.
Top Odisha Microfinance Bank
Top Odisha Microfinance Bank for Loan in 2022-Microfinance companies focus on rural or semi-urban areas where people need money urgently for a short time period usually for a period of 1 to 2 years.
Microfinance companies on one hand work closely with women entrepreneurs for helping them start small tailoring shops, art and craft shops and local produce businesses.
On the other hand microfinance companies make loans to MSME, for housing and starting dairy businesses.
How Microfinance Companies Work
Top Odisha Microfinance Bank for Loan in 2022-Microfinance Institutions (MFIs) need to have a license from RBI to start their operations. MFIs offer collateral-free loans of up to Rs. 50,000 (in some cases up to 1,00,000) to small businesses or individuals.
You can understand how microfinance companies work with the help of this .
Working Model of Microfinance Companies in India
1. Self Help Group (SHG)
Top Odisha Microfinance Bank for Loan in 2022-Self Help Group is an informal group of small entrepreneurs with similar socio-economic backgrounds. Small entrepreneurs including women come together to create a common fund to meet the emergency needs of their business. The SHG is a savings oriented group.
They fix periodic meets, open an account with a microfinance company and save regularly in the fund, and when any group member needs funds, he gets that from the collective savings.
These groups are generally non-profit self-sustaining organizations. The group itself takes care of the responsibility of debt recovery.
Self-help groups get money on credit from the bank like NABARD and SIDBI once they become stable and present a track record of regular repayments of their borrowers.
2. Joint Liability Group (JLG)
Top Odisha Microfinance Bank for Loan in 2022-Joint Liability Group concept for microfinance was started by NABARD. JLG is a group of 4-10 small farmers, rural entrepreneurs, people of the same village/locality having the same socioeconomic background.
The JLG is formed with the purpose of availing loan from a microfinance company without any collateral. The JLG is for income generation, activity-oriented groups.
Microfinance companies can finance a JLG in two ways
- Financing to the group directly
- Financing to the individual in the groups
However, in both cases, all members of JLG are responsible for repaying the loan amount.
Best Microfinance Companies in India Working as Banks
Top Odisha Microfinance Bank for Loan in 2022 The micro banking loans offered are
- Suchana microloan
- Suraksha
- Su-briddhi microloan
- Srishti microloan
- Susikhsha microloan
- Samadhan loan
Top Odisha Microfinance Bank for Loan in 2022 Pros of Bandhan Bank
- Has vast experience in microfinance
- Now offers other banking services
- Dedicate microfinance loans
Cons of Bandhan Bank
- Most of the banking outlets in eastern India
- Also working as a bank
List of Top Microfinance Companies in India
Top Odisha Microfinance Bank for Loan in 2022 Following are the top 10 Microfinance companies in India:
SKS Microfinance Ltd (SKSMPL)
| Name | SKS Microfinance Ltd |
| Headquarter | Secunderabad, Andhra Pradesh |
| Legal Status | Pvt. Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 1,413 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 18,227 |
| Borrowers (As on September 30, 2008) | 2,590,950 |
| Net Worth (` Mn) (As on September 30, 2008) | 2,395 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 23.40 |
| OSS (%)(Apr 1-Sep 30, 2008) | 126.49 |
| Current Portfolio (%) (As on September 30, 2008) | 99.14 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 7.37 |
Spandana Sphoorty Financial Ltd (SSFL)
| Name | Spandana Sphoorty Financial Ltd |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company (NBFC) |
| Lending Model | JLG, Individual |
| Number of Branches | 696 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 11,987 |
| Borrowers (As on September 30, 2008) | 1,668,807 |
| Net Worth (` Mn) (As on September 30, 2008) | 1,225 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 27.43 |
| OSS (%)(Apr 1-Sep 30, 2008) | 132.02 |
| Current Portfolio (%) (As on September 30, 2008) | 98.88 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 7.04 |
Share Microfin Limited (SML)
| Name | Share Microfin Limited |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company (NBFC) |
| Lending Model | JLG, Individual |
| Number of Branches | 666 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 8,568 |
| Borrowers (As on September 30, 2008) | 1,231,556 |
| Net Worth (` Mn) (As on September 30, 2008) | 1,448 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 27.49 |
| OSS (%)(Apr 1-Sep 30, 2008) | 152.45 |
| Current Portfolio (%) (As on September 30, 2008) | 99.32 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 5.03 |
Asmitha Microfin Ltd (AML)
| Name | Asmitha Microfin Ltd |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 363 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 4,944 |
| Borrowers (As on September 30, 2008) | 694,350 |
| Net Worth (` Mn) (As on September 30, 2008) | 475 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 17.43 |
| OSS (%)(Apr 1-Sep 30, 2008) | 121.04 |
| Current Portfolio (%) (As on September 30, 2008) | 99.80 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 9.92 |
Shri Kshetra Dharmasthala Rural Development Project (SKDRDP)
| Name | Shri Kshetra Dharmasthala Rural Development Project |
| Headquarter | Dharmasthala, Karnataka |
| Legal Status | Trust |
| Lending Model | SHG |
| Number of Branches | 22 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 4,060 |
| Borrowers (As on September 30, 2008) | 612,482 |
| Net Worth (` Mn) (As on September 30, 2008) | 157 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 12.02 |
| OSS (%)(Apr 1-Sep 30, 2008) | 100.46 |
| Current Portfolio (%) (As on September 30, 2008) | 99.68 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 29.81 |
Bhartiya Samruddhi Finance Limited (BSFL)
| Name | Bhartiya Samruddhi Finance Limited |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company, (NBFC) |
| Lending Model | Diversified |
| Number of Branches | 87 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 3,882 |
| Borrowers (As on September 30, 2008) | 457,668 |
| Net Worth (` Mn) (As on September 30, 2008) | 317 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 17.89 |
| OSS (%)(Apr 1-Sep 30, 2008) | 108.97 |
| Current Portfolio (%) (As on September 30, 2008) | 99.00 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 11.59 |
Bandhan
| Name | Bandhan |
| Headquarter | Kolkata, West Bengal |
| Legal Status | Society |
| Lending Model | JLG |
| Number of Branches | 385 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 3,389 |
| Borrowers (As on September 30, 2008) | 851,713 |
| Net Worth (` Mn) (As on September 30, 2008) | 435 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 26.32 |
| OSS (%)(Apr 1-Sep 30, 2008) | 175.40 |
| Current Portfolio (%) (As on September 30, 2008) | 99.92 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 7.07 |
Cashpor Micro Credit (CMC)
| Name | Cashpor Micro Credit |
| Headquarter | Varanasi, Uttar Pradesh |
| Legal Status | Section 25 Company |
| Lending Model | JLG |
| Number of Branches | 247 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 1,431 |
| Borrowers (As on September 30, 2008) | 303,935 |
| Net Worth (` Mn) (As on September 30, 2008) | 93 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 28.78 |
| OSS (%)(Apr 1-Sep 30, 2008) | 109.71 |
| Current Portfolio (%) (As on September 30, 2008) | 98.00 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 14.72 |
Grama Vidiyal Micro Finance Pvt Ltd (GVMFL)
| Name | Grama Vidiyal Micro Finance Pvt Ltd |
| Headquarter | Tiruchirappalli, Tamil Nadu |
| Legal Status | Pvt. Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 126 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 1,316 |
| Borrowers (As on September 30, 2008) | 288,311 |
| Net Worth (` Mn) (As on September 30, 2008) | 231 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 32.46 |
| OSS (%)(Apr 1-Sep 30, 2008) | 141.53 |
| Current Portfolio (%) (As on September 30, 2008) | 99.54 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 4.95 |
Grameen Financial Services Pvt Ltd (GFSPL)
| Name | Grameen Financial Services Pvt Ltd |
| Headquarter | Bangalore, Karnataka |
| Legal Status | Pvt. Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 62 |
| Loan Outstanding (` Mn) (As on September 30, 2008) | 1,287 |
| Borrowers (As on September 30, 2008) | 153,453 |
| Net Worth (` Mn) (As on September 30, 2008) | 127 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 18.77 |
| OSS (%)(Apr 1-Sep 30, 2008) | 106.41 |
| Current Portfolio (%) (As on September 30, 2008) | 99.98 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 10.51 |
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