MMFL poised for rapid growth

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Chennai, Jul 28 (UNI) Madura Micro Finance Limited (MMFL), a leading credit provider to rural customers, was poised for a rapid growth by increasing its membership, mainly women SHGs, from the present four lakh to 1.5 million in three years.

A clear strategy and the necessary systems had been put in place to propel the company, which was focussed to reach 20 per cent of the rural households in Tamil Nadu.

Addressing a press conference here today, MMFL Chairperson Tara Thiagarajan said the company has two clear USP's in its favour.

''We have the lowest interest rates on loans given to rural women, and had achieved the unique distinction of been rated number one world-wide by Forbes Magazine for operational efficiency.

''Our operating cost is just 3.5 per cent, which enable us to provide micro finance loans at the lowest possible interest rates and still have a healthy bottom line. The other USP is that we bring a lot of value addition in all our offerings that brings various long-term benefits to the customers beyond just credit alone'', she added.

Highlighting the financials, she said the portfolio size was Rs 120 crore and total disbursals in last 27 months was Rs 260 crore".

MMFL provides short-term loan of Rs 2,500 per member on six months repayment, term-loan of Rs 5,000 per member on 12 months repayment and activity-term loan of Rs 12,500 to Rs 25,000 per member on 42 months repayment.

The lending rates were as low as 17 per cent to 19.5 per cent per annum compared to 25 to 30 per cent levied by other MFIs in the market.

Dr Tara said MMFL raises money from lending partners like ICICI Bank, SIDBI, City Union Bank, ING Vysya, Axis Bank, Karur Vysya Bank, HDFC and Indian Overseas Bank.

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