Utkarsh Microfinance Private Ltd

Imprimer

Utkarsh Microfinance Private Ltd. (UMPL) was established in September 2009 to cater to the financially excluded population, and essentially provides credit to female borrower groups under the Grameen model. 70% of UMPL’s 240 branches are located in rural areas in the major Northern India states, which are among the poorest and where micro-entrepreneurs suffer from limited availability of adapted financial services.

In five and a half years UMPL has grown a loan portfolio of USD 115m outstanding to 610,000 borrowers, while maintaining excellent portfolio quality. Within another three years UMPL projects to reach out to 1.5m clients and build a loan portfolio of USD 450m.

BIO’s USD 5m loan will facilitate the further growth of UMPL, which remains relatively young compared to other, more established Indian MFIs. BIO’s long-term investment will help UMPL achieve its ambitious growth plan as well as provide diversification and stability in its funding.

Development impacts

  • Local economic growth (credit provisions to MSMEs) : operations are essentially related to the origination and monitoring of microloans; The low average loan of 162 USD confirms this.
  • Financial inclusion (access to financial services for individual and micro-enterprises)
  • Food security and rural development: MFI mostly active in rural areas; portfolio consists of agriculture (11%), livestock (38%) and trade (34%).
  • Gender: MFI caters primarily to women. BIO’s USD 5m loan will also contribute to financing approximately 16,500 self-employed women.

Website : www.utkarshmfi.com

  • Montant de l’investissement (€):

    € 3.62 M

  • Signature du contrat :

    2015

  • Nature de l’intervention :

    Debt

  • Impacts sur le développement :

    • 1 — Local economic growth
    • 2 — Financial inclusion
    • 3 — Food security and rural development
    • 4 — Gender