Year by year, the significance of micro-financial institution (MFI) in India continues to grow greater than ever. With their ability to reach the individuals in the far-flung remote areas to provide formal financial support, MFIs are at the forefront of changing development dynamics. These institutions are attracting development and a sustainable one, on the basis of which India can leap to a power position globally. Let’s explore the top MFIs in India and how they are changing the nation for the better.
Muthoot Microfin Limited
One of the leading microfinance institutions in the country, Muthoot Microfin Ltd operates under the aegis of Muthoot Pappachan Group. The establishment is focused on uplifting women entrepreneurs in rural India. Today, when every country is paving its way towards sustainable development, it has become necessary to address the deeply entrenched issues. India, which aims to be one of the most powerful economies globally, needs to relentlessly push the development of “Women” and “Rural”. Therefore, uplifting the status of women in rural areas is the most effective way to promote inclusive growth as well as overall societal development. Muthoot Microfin Ltd’s average loan ticket size is Rs 32,000; the firm can support millions of small dreams via their services. The firm is leading in the field by catering to the needs of the women in lower-income households and believes that such individuals gain access to credit; they can identify new opportunities and supplement to grow their existing income.
Annapurna Financial Services Pvt Ltd
Another popular name in the top-rated microfinance providers in India is Annapurna Financial Services Pvt Ltd. Initially, the firm was called Gwalior Finance & Leasing Pvt. Ltd. Understanding the power of self-employment among the lower-income diaspora in our country, the company aims to support as many microloans as possible to help individuals improve their lives. The company offers both financial and non-financial support to the poor and is focused on providing services in the remote areas of the country where formal financial support is unavailable or is rarely available. A large part of their services are availed by small farmers and people in agricultural businesses. With their flexible schemes, the company can be said to positively impact the agriculture segment and the rural segment of the country significantly.
Bharat Financial Inclusion
What was once popular as SKS Microfinance became Bharat Financial inclusion after merging with IndusInd Bank Ltd. The company focuses completely on the country's rural areas and provides financial assistance to the lower-income group. The company also helps the borrowers with training and knowledge of financial literacy before they receive the loan. Like Muthoot Microfin Ltd, the company also focuses on women entrepreneur and has distributed loans ranging from Rs. 2000 to 20,000 to women entrepreneurs in the rural areas. The company aims to promote every single business idea, from selling tea or vegetables to setting up tuition centres in villages. Bharat Financial Inclusion aims to promote the idea of autonomous individuals irrespective of their gender or education level.
Spandana Sphoorty Financial ltd
Founded in 1998, Spandana became the largest Micro Finance Institution in India and 6th largest globally in 2003. The firm aims to uplift people's livelihoods below the poverty line and enable them to work on their own business ideas, which can be as simple as installing a food stall or setting up a vegetable cart. The company boasts of providing formal financial help to more than 55 lakh borrowers, hence changing their lives forever. Spandana too has a special focus on women entrepreneurs.