Fusion Microfinance Private Limited

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Fusion started its microfinance activities in 2010 and focuses on creating access to micro-loans for female micro entrepreneurs active in rural and suburban areas. Fusion operates in isolated rural areas where the lack of access to finance impedes micro entrepreneurs from developing or expanding their activities.

About half of Fusion’s over 180,000 clients are active in agri-related business. They are located in Northern and Central India, in the states Uttar Pradesh, Madhya Pradesh, Uttarakhand, Haryana and Delhi. The growing MFI is now looking into expanding its activities to other underserved markets in order to reach out additional clients. The MFI puts great effort in financial and social inclusion for the population of the lower casts of the country, who account for about 80% of its loan portfolio.

Fusion provides microfinance loans through so called Joint Liability Groups. In this model, borrowers join together in a small group, loans are given to the group as a whole so that each member of the group is responsible for the loan taken by any member, leading to a form of social control and joint responsibility. The small groups of 15 to 30 women receive a 3-day training from Fusion Microfinance prior to become eligible for loan financing.

BIO is partnering with Oikocredit, Incofin and the Norwegian Microfinance Initiative to support Fusion in its expansion plans.

Development impacts:

  • Local economic growth: strong direct employment effect as Fusion’s staff will increase from 600 to over 2000 by 2019; strong indirect employment effect as most clients are self-employed and supported by Fusion Microfinance to set up and develop their micro-business
  • Financial inclusion: financial inclusion for marginalized communities of the lower casts
  • Gender: increase access to finance for woman entrepreneurs active in underserved and rural areas of India

Visit Fusion's website for more information.

  • Investment amount (€):

    € 5.26 M

  • Contract signature :

    2015; 2016

  • Nature of intervention :

    Equity

  • Development impacts :

    • 1 — Local economic growth
    • 2 — Financial inclusion
    • 3 — Gender

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