By FMTeam See, in India, there sure are so many big and small banks offering banking and financial services to millions of people. There is no denial in that, but did you know that there are still so many people, mainly the low-income group people, left out by these banks and they don’t get access to financial services? Yes, that’s the very reason why there is a need for microfinance companies in India. And thankfully, there are dozens of pretty good such companies working in India to make banking more inclusive, you know? That’s why we are here to talk about the top 10 leading microfinance companies in India as of 2024. So, let’s get to the list that we have prepared for you, here we go.
1. BSS Microfinance Limited
Have you heard of a microfinance business that has been around for almost 30 years right here in India? There you have it, BSS Microfinance Limited! It was actually in 1997 when this company took its baby steps and look at them now. Talking about something recent, which is kinda a big thing for BSS Microfinance Limited that back in 2016, Kotak Mahindra Bank bought it. Even after the big merger, BSS has kept true to its mission of helping people in Karnataka, Maharashtra, Madhya Pradesh, and Tamil Nadu who are struggling financially, that’s for sure.
2. Equitas Small Finance Bank
You may have heard of Equitas Small Finance Bank if you keep up with financial news. Why? Because they said their Profit After Tax grew by an amazing 97% year-over-year in Q1 FY24! Right now though, Equitas offers a wide range of products, such as small business loans and store overdrafts, and puts a lot of effort into using technology to make the customer experience better. To put it simply, you see, it is actually their plan of putting digital first and increasing retail and CASA deposits that have made them a strong and forward-thinking microfinance player.
3. Annapurna Finance Limited
One thing we can say for sure is that ever since 2009, Annapurna Finance Limited has been making people’s lives better. This NBFC-MFI has a strong foothold in eastern India and is known for offering low-income people a wide range of customized financial products. Over the years, they’ve embraced digital lending systems, which makes it easier for people to get financial services. Recent investments, like the one from Piramal Alternatives, have helped them grow, and now they handle ₹9,539 crore worth of assets just so you know.
4. Arohan Financial Services Limited
Did you know that Arohan Financial Services Limited works in 17 states, mostly in places with low incomes? And just a bit of introduction, you see, this company has been around since 2006 and has more than two million users thanks to its innovative digital lending app, Apna Arohan. Talking about something recent, you see, their plans for an IPO within the next year and their recent capital raise of ₹730 crore show that they are growing quickly and have big goals.
5. Asmitha Microfin Limited
Since 2001, Asmitha Microfin Limited, which is based in Hyderabad, has been giving rural women more power. How exactly? Well, BlueOrchard and Jacinth Finvest have put a lot of money into Asmitha, which focuses on providing financial services to people who can’t use the official system, you know? Their training and marketing programs make sure that people who get their services make the most of them. As long as CEO Reykam Jayasurya is in charge, Asmitha will continue to help rural economies and stay true to its goal of financial inclusion, that’s for sure.
6. Muthoot Microfin Limited
Since its start in 1992, Muthoot Microfin Limited, which is part of the Muthoot Pappachan Group, has grown so much that we couldn’t skip over this one and choose another company to add to this list. If you want to know what they do, well, the organization puts a lot of effort into helping women in rural areas. Talking about something recent, well, their net income went up by 174% and their sales went up by 84%. Their ‘Mahila Mitra’ app has improved digital services and made it easy to handle loans.
7. Spandana Sphoorty Financial Limited
The joint liability group (JLG) plan is the main focus of Spandana Sphoorty Financial Limited, which was established in 2003. You see, even though Spandana had a tough financial year with net profits falling by more than 50%, the company still has a strong loan portfolio, that’s for sure. All in all, this very company aka Spandana continues to focus on financial inclusion and market growth under the leadership of CEO Shalabh Saxena.
8. Asirvad Micro Finance Limited
Asirvad Micro Finance Limited is a division of Manappuram Finance Limited, did you know that already? It does business in 23 states and has about 2.6 million users. Asirvad was founded in 2007 and has its main office in Chennai. Just so you know, its main goal is to give small loans to women businesses to help them succeed. Their goal is helped by a recent $15 million loan from WorldBusiness Capital.
9. Bandhan Financial Services Private Limited
Bandhan Financial Services Private Limited (BFSL) began in 1995. And it was actually in 2015 that its microfinance business was transferred to Bandhan Bank. Because of just that, Bandhan Bank is now a major player in India’s banking industry. Its main customers are low-income families and small companies. Bandhan’s planned growth and improved digital banking features make sure that everyone can access all of its financial services. And just so you know, the bank’s loan book is expected to grow by 19% in 2024.
10. Fincare Small Finance Bank Limited
Fincare Small Finance Bank stands out because it puts “digital first.” Fincare was formed when Disha Microfin and FFSL merged, and yes, it started doing business in 2017. After merging with AU Small Finance Bank in 2024, they now have over 10 million customers, making them a strong retail banking company. Because Fincare focuses on digital banking, automated processes, and fast account opening, they are a leader in financial services that use technology.
Conclusion
That’s all for now. As of Aug 2024, these are by far the biggest, most trusted, and leading microfinance companies in India. And as you saw what steps these companies are taking to make the financial scene more inclusive, which is also why these names are gaining more trust in the country.