SAMAVESH is started with a vision to provide microfinance services in underserved areas. It may seems surprising for many of us that on one hand Microfinance sector is discussing and debating the over indebtedness of microfinance clients and ways to get rid of it. However on the other hand many, including SAMAVESH, aspiring to serve un-served and under-served. But the fact is large number of population which could be potential customer for microfinance; do not have access of credit from formal financial institution. As per MFIN micrometer report for September 2018, NBFC MFIs, bank, NBFCs, SFBs and other entity engaged in microfinance have all together 7.77 cr. active loan accounts. This means they have less than 7.77 Cr. Borrowers, as one borrower may have more than one loan. Assuming average household size of 5 all of the players are engaged with less than 1.5 cr household across India. The outreach of all the players is insignificant consider the large population size, 134 Cr, of the country. The reason for low outreach and over indebtedness is obvious. Most of the MFIs have decided to reach in those areas where at least one or more players exist. This is to reduce client acquisition cost, as the client awareness of MFIs loan is high in these areas. Moreover, MFIs has focused on increasing loan per customer to fulfill their business requirement than increasing number customer.
After RBI has given SFB license to 10 big NBFC MFIs and universal license to Bandana, many of these banks has shifted their focus to upward market and decide to reach downward market through partnership with small MFIs through BC or direct portfolio assignment structure.
Changed scenario in the sector has open up huge scope for smaller player and new entrants through dual window. First they have immense market potential to tap second they have new source of funding from SFBs and Universal bank by way of BC, direct portfolio assignment and term loan.
SMAVESH is ready to tap the immense potential of the sector. In next five years SAMAVESH will focus in north India and will start from Eastern UP and BIHAR and gradually will expand in JHARKHAND, MP, Chhattisgarh, Rajasthan, Uttrakahnd, NCR and Punjab. We have planned to have half of our portfolio under BC and direct assignment structure (off book) and half under term loan (on book) structure. This will us to leverage our capital optimally.
In the first year we are targeting to build around Rs.80 Cr loan portfolio with 50 thousand loan clients, In 2nd year Rs.200 Cr of loan portfolio with 1.5 lakh loan client, and in 3rd year Rs.350 Cr. Of loan outstanding with 4 lakhs of loan clients. Our team has more than two decade of experience in microfinance sector which will help to achieve the target effortlessly.