Reliance Capital launches microfinance initiative

Mumbai, Mar 3: Reliance Capital, the financial services company of the Reliance Anil Dhirubhai Ambani Group, today launched its microfinance initiative in partnership with Micro Finance Institutions (MFIs). The Company announced its tie-up with two MFIs -- MAS Financial Services and Gujarat-based Vardan Trust -- as a part of the initiative that was launched by Tina Ambani here today.

''Our vision is to provide access to finance at the grassroot level by partnering with MFIs serving the rural and the semi-urban areas. This initiative is in line with the group's commitment to play a serious role in bringing value to the lives of the underprivileged and the aged in India,'' Ms Ambani said while addressing mediapersons. Reliance capital plans to fund MFIs in Gujarat and Maharashtra in the first phase, and subsequently have a national presence.

''The initiative envisages lending to MFIs, who would then be on-lending finances to self help groups, individuals and joint liability groups as per their norms,'' Reliance Consumer Finance Deputy CEO K V Srinivasan said.

''MFIs often find raising capital a difficult proposition. This partnership will help us in optimally utilising our expertise in distribution of credit to tiny and small enterprises for income generation activities, consumption and emergency needs,'' MAS Financial Services Director Mukesh Gandhi said.

''This tie-up is sure to help us in spreading our network further and meeting the growing need for finance by micro-entrepreneurs such as agriculture labourers, farmers, small shop owners, artisans, unskilled labourers and small enterprise workers,'' Vardan Trust CEO Mahesh Vara said.

UNI