Hope Microcredit Finance (India) Pvt. Ltd. (HMFL), a Non Banking Finance Company (NBFC) headquartered at Palakkad in Kerala, has successfully organized a loan mela in association with Corporation Bank. More than 200 SHG members drawn from Ottapalam and Pazhayannur branches have benefited the mela, organized at Lakidi in Palakkad district.
The disbursement programme was inaugurated by M.G. Nair, Deputy General Manager, Corporation Bank. Sarangadharan, Senior Manager, Corporation Bank, Palakkad was the special guest. Jagadeesh.S, Zonal Head, HMFL, Jayanthi Chairperson, Aradhana SHG Federation, Arun Kumar, Area Manager, HMFL also participated in the programme.
Inaugurating the function M.G.Nair said “One should recognise that over the last decade, MFIs have been able to provide credit to over 25 million poor households, eclipsing five decades of government efforts. The potential for microfinance is great. If programs are designed to have components that foster life skills, self-confidence, leadership potential, and community engagement, then the microfinance programs can really be invaluable in empowering women.”
Presiding over the function, HMFL Chairman, Raju Kuriachan said “the guiding principle behind Hope Microcredit is to create entrepreneurs among the poor so they can carry out gainful economic activities, generate employment and build trust. Through inclusive growth, HMFL’s microcredit programs spur economic activities in rural areas and can be considered a potent tool for socio-economic development.”
The fund-raising and disbursement of HMFL has added significance not only for HMFL but also for the entire microfinance
industry in the country. It signals the return of microfinance activities in a full-fledged manner after the Andhra Pradesh crisis. The banks and other financial institutions in the country have again opened the door for the sector and started sanctioning loans for MFI’s.
HMFL, incorporated in January 2010, is a voice and change agent for poor SHG entrepreneurs. Its goal is to build a network of strong SHGs all over the country and ensure that the rapidly changing field of microfinance focuses on women as clients, and innovators. The company’s operations are spread across four states with 44 branches.
HMFL works together with bankers, other financial institutions and SHGs shoulder-to-shoulder towards a single compelling mission – building the economic foundations for the marginalized by providing the rural poor with the tools they need to lift themselves out of poverty.
HMFL also clinched a major equity investment deal with Incofin Investment Management (Incofin IM), Belgium in 2010. HMFL-Incofin IM investment deal brought more credibility to the company’s operations. Besides, HMFL will emerge as a credible MFI investment destination in Kerala in the days ahead. The investment will considerably boost the operational efficiency and outreach of HMFL.
Microfinance fills a key need in developing countries like India: the provision of financial services to low-income clients who traditionally lack access to formal banking for several reasons. Those could include the absence of collateral or any evidence of ownership of assets; informal employment; unverifiable credit history; and high transaction costs per rupee loaned, due to the small loan size.