India: Country Overview

India has a rich history of microfinance, shown by the abundance of self-help groups and microfinance NGOs. The government is supportive to the transformation of NGOs into regulated Non-bank Financial Companies (“NBFCs”). Earlier than in any other country, commercial banks in India also have recognized the attractiveness of the microfinance sector and are now providing wholesale loans to MFIs on a large scale. This has resulted in a relatively efficient and, based on regional standards, highly commercialized microfinance sector. In addition, commercial investors also have shown great interest in the Indian microfinance sector as demonstrated by the recent capital increases of three large MFIs: SKS Microfinance, Share Microfin and Spandana.

Despite these favorable conditions, MFIs still serve only about 8% of the estimated potential demand. High-potential MFIs have relatively good access to debt funding.

Figures in million

Population Demographics

Microfinance Demographics

Country

Total

Population

Below

Poverty

Line(%)

Rural

(%)

Urban

(%)

Estimated

# MF Clients

Currently

Served

Served  

(%)

India

1,185

28.6

70

30

140.68

10.74

7.63

Status of ASA International (ASAI) in India- ASA International has been the owner of majority share capital of ASA International India Microfinance Pvt. Ltd, an NBFC and started micro lending on 4th of July, 2008.

Main Product and Feature

Context

Small/General Loan

Small Business/ Small Enterprise Lending

Loan Ceiling  (1st loan)

INR 10,000/USD 200

INR 50,000/USD 1000

Increased in later Ceiling

Up to 3000/USD 60

Up to 10000/USD 200

Insurance/Upfront interest

1%

1%

No. of Installments

45

45

Loan Duration/ Period

01 year

01 year

Processing Time for 1st Loan

2 week

2 week

Grace Period

1 week

1 week

Operational Coverage

 

At present, ASA International India Microfinance Pvt. Ltd. is working in West Bengal State covering ten (10) districts named Kolkata, North 24 PGs, Howrah, South 24 PGs, Nadia, Hooghly, Murshidabad, Siliguri, Burdwan, and Midnapore along with the expectation of expanding in other states gradually.

 

Source of Fund: Shareholder’s equity

 

Performance (started lending in July, 2008)

Particular

Up to September 2009

No. of Borrowers

97,377

No. of Loan Officer

285

No. of Borrowers per Loan Officer

342

Loan Outstanding (Principal) U$$

8,927,669

Avg. Outstanding per Borrower (U$$)

92

Portfolio per Loan Officer (U$$)

31,325

Contact: kmitra@asa-international.com

Phone: +913340046142

Head Office: BF-210, Salt Lake City, Kolkata-700 064