Credible Microfinance Private Limited

India

Credible Microfinance Pvt. Ltd. “Financial Solutions for the poor” Credible Microfinance Private Limited was established to give finance with reasonable rates of interest to poor women who have the opportunity to earn a living through their own income generation activities. Bharat Integrated Social Welfare Agency (BISWA), Credible’s parent organization, started its microfinance services through SHGs in the district of Sambalpur, Orissa in the year 1995. Gradually its operation expanded to 30 district of Orissa. In April 2006, to facilitate future expansion, the chairman of BISWA promoted a Non Banking Financial Company, Credible Microfinance Pvt Ltd, to transfer the microfinance operation of BISWA to an NBFC. Credible then started is microfinance activities in Orissa from November 2006.

Highlights • Equity Investors: Mr. K C Malick and Bellwether Microfinance Fund (0.22 million € - 15 million INR.) • Debt Fund from: Bellwether Microfinance Fund • Last Year Revenue+ Projected Revenue: 0.18 million € (12.09 million INR) • Large existing infrastructure and clientbase through promoting institution (BISWA) • Excellent portfolio quality and financial sustainability (126% OSS)

Key Indicators Legal Status: NBFC Foundation year: 1993 Location: Sambalpur, Orissa, India Clients number: 2,147 (March 2008) Products: -Agricultural Loan -Income generation Loan -Livestock Loan % of product = MF: 100% OLB: 0.28 million €(March 2008) Required capital : 1.5 million € (debt), 0.74 million €(Equity)

Market Potential and Growth Prospects BISWA is operating in 30 district of Orissa, working with 30,017 SHGs. As BISWA’s MF operation is currently being transferred to Credible, as of now, CMPL has disbursed loans to 142 groups in two district of Orissa and is targeting to disburse credit to 1250 SHGs by the end of this financial year. Through its five year growth plan, Credible targets a total loan amount of 340 million INR (5.06 million €) with 44,200 members by 2010-2011.

Products and Services Credible offers agricultural, income generating, and livestock loans which are all currently being monitored by BISWA staff. All products are offered to women, start from INR 500 and increase to INR 25,000 (7.5€ - 373€), have a 20% interest rate and have a 12-15 months repayment schedule depending on the loan.

Funding Strategy At present, CREDIBLE has received debt support of 0.30 million € along with 49% equity investment from Bellwether along with 0.15 million € equity from the staff of BISWA and 0.7 million € equity from other shareholders. Currently, Credible Microfinance’s cost of funds is at 7.5% and plans to raise 1.5 million € by the end of this financial year. In order to create efficiency and achieve high client outreach and profitability, Credible seeks strategic investors as well as long term debt. CMPL expects to finance 90% of its total portfolio through debt funding and has also applied to NABARD for 0.15 million € subsidized loan at 0% cost.

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SAMN South Asian Microfinance Network

Credible Microfinance Pvt. Ltd. “Financial Solutions for the poor” Key Operations and Financial Indicators and Projections Operational Data

2005

2006

2007

2008

2009

2010

2011

Outstanding Loan Balance(million €)

-

0.457

0.284

1.49

3.26

6.24

11.182

Number of Active Borrowers

-

-

2,147

2,962

16,250

32,500

44,200

Active Borrowers/Credit Officer

-

-

1,074

1,481

8,125

10,833

11,050

Portfolio Outstanding per staff member (€) -

228,674

142,177

700,462

1,087,241 1,559,774 2,236,415

Average loan size (€)

-

-

213

96

86

100

141

% of female clients

-

100%

100%

100%

100%

100%

100%

% of rural clients

-

85%

73%

80%

80%

80%

80%

Operational Self Sufficiency

-

46%

99%

126%

115%

110%

107%

ROA

-

4%

14%

11%

8%

9%

8%

ROE

-

-9%

-9%

4%

4%

8%

5%

CAR

-

46%

52%

15%

29%

15

22%

PAR (30 days)

-

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Operating Expense Ratio

-

176%

69%

26%

26%

25%

25%

Yield on portfolio

-

4%

21%

9%

6%

7%

6%

Financial Indicators

MANAGEMENT AND STAFF

NUMBER OF STAFF MEMBERS : 5

Mr. Asish Kumar Sahu, Manager of Operations Relevant Experience in Microfinance and Livelihoods Rajashree Khuntia, Credit Officer Relevant Experience in Microfinance and Social development Sashank Sekhar Dalpat, Credit Officer, Relevant Experience in Microfinance and Social development On the board: Khirod Chandra Malick, Chairman BISWA Managing Director of the Board, Balusu Venkata Narasimham, Investment Officer Bellwether, Nominee Director of the Board

BRANCHES : 2

VILLAGES: 63

2 Loan officers

2 Female staff

CONTACT DETAILS Mr. Khirod Chandra Malick BISWA Campus, Danipali, Budharaja, Sambalpur, Orissa-768004 09437056453 [email protected]

SAMN South Asian Microfinance Network