Annapurna Microfinance Private Limited


Annapurna Microfinance Private Limited (AMPL) saw the light as a microfinance initiative of a local NGO, People’s Forum, in the early nineties for women micro-entrepreneurs in mainly rural areas. Access to finance in rural areas in India is very limited and AMPL focuses on areas that are difficult to reach and are largely overlooked by the commercial financial services.

AMPL applies a group lending methodology: all loans are provided through so-called Self-Help Groups of 8 to 20 women who have been saving together for at least six months and who have received training from AMPL. AMPL does not only provide microfinance loans, they also provide business development services and have developed special financial products catering to very specific needs of their target clients, such as water and sanitation loans.

In February 2014, AMPL’s portfolio consisted of 225.000 clients and services were provided through 53 branches in the states of Orissa and Chhattisgarth, 2 of the poorest areas in India.  AMPL is now aiming at substantially growing that portfolio and expanding to new areas. To support AMPL in this expansion, BIO is, together with Incofin’s Rural Impulse Fund II, participating in its capital increase. BIO contributed EUR 3,5 million to AMPL’s capital in 2014 and another EUR 2 million in 2017.

The partnership with Incofin allows for a proactive support of AMPL’s strategy and governance. Moreover, it is a clear sign to private investors to gain confidence in the MFI and encourage future commercial funding.

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Development impact:

  • Local economic growth: Provision of both credit and non-financial services to micro-entrepreneurs in rural areas of Central-Eastern India.
  • Private sector consolidation/innovation: Increased competition; AMPL expects to expand its operations (today operates in 10 states) further in Central-Easter but also Norther and to some extent Western India (to operate in 14 states by end of 2019).
  • Financial inclusion: The investment will support the growth of AMPL's micro finance portfolio, which will translate directly into increased provision of and access to financial services for clients who have successfully leveraged the services and setup micro-enterprises.
  • Food security and rural development: Focus on clients in rural and semi-urban areas.
  • Gender: The vast majority (99,98%) of AMPL’s clients are women (the SHG loans are provided solely to women).

In 2016, BIO also subsidized a € 47.303 technical assistance project

  • Investment amount (€):

    € 5,5 M

  • Contract signature :

    2014, 2017

  • Nature of intervention :


  • Development impacts :

    • 1 — Local economic growth
    • 2 — Private sector consolidation/innovation
    • 3 — Financial inclusion
    • 4 — Food security and rural development
    • 5 — Gender

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