Grama Vidiyal Microfinance Company Overview and News

Grama Vidiyal Microfinance Company is a non-banking financial company that provides financial services to the rural population in India. It was established in 2002.

The company has a strong presence in the state of Tamil Nadu, with over 2 million customers and a network of 150 branches. Its main goal is to provide financial inclusion to the rural poor.

Grama Vidiyal offers a range of financial products such as loans, savings accounts, and insurance services. These products are designed to meet the specific needs of rural customers.

Additional reading: Bharat Financial Inclusion

Grama Vidiyal offers a variety of loans to its members. These loans are designed to support various income-generating activities of the members and their families.

The General Loan is one of the loan products offered by Grama Vidiyal. It has a maximum ceiling of Rs.25,000.

The loan amount is capped at Rs.25,000, making it accessible to a wide range of members. This loan amount is suitable for small businesses or personal expenses.

The General Loan is a significant part of Grama Vidiyal's loan portfolio, accounting for 80% of the total loan portfolio.

A unique perspective: Bandhan Bank Loan

Grama Vidiyal has received investment from prominent investors, including Vinod Khosla, co-founder of Sun Microsystems and former partner in Kleiner Perkins.

The Unitus Equity Fund has also invested in Grama Vidiyal, with a fund size of $23.6 million that invests in emerging microfinance institutions.

In 2016, Grama Vidiyal was acquired by IDFC First Bank Ltd, which led to a change in the company's name to IDFC Bharat Ltd.

Microfinance institutions provide various types of loans to individuals and small businesses, such as general and seasonal loans.

Grama Vidiyal Microfinance is a great example of this, offering general, seasonal, business, and housing loans.

These microfinance institutions often partner with other organizations to reach more people, like the partnership between Grama Vidiyal Microfinance and Activists for Social Alternatives (ASA).

This collaboration allows them to provide small loans to women who don't have access to formal credit, which can be a game-changer for their financial stability and independence.

Consider reading: ESAF Small Finance Bank

Vinod Khosla, co-founder of Sun Microsystems, is one of the prominent investors in this microfinance institution.

Additional investment has come from the Unitus Equity Fund, a $23.6 million fund that invests in emerging microfinance institutions.

In 2016, Grama Vidiyal was acquired by IDFC First Bank Ltd, formerly known as IDFC Bank Ltd, and its name was changed to IDFC Bharat Ltd.

Grama Vidiyal offers a variety of loans to its members.

The institution provides general, seasonal, business, and housing loans. It has partnered with Activists for Social Alternatives (ASA) to provide small loans to women without access to formal credit.

Grama Vidiyal Micro Finance Ltd offers the following financial products:

Grama Vidiyal has a high degree of screening, taking into consideration the cash flow of the proposed business activity and the previous repayment history of the client.

Grama Vidiyal Micro Finance Ltd offers the following financial products. They provide general loans, which can be used for various purposes such as daily expenses or emergencies.

Grama Vidiyal Microfinance also offers seasonal loans, which are designed to help people cover expenses during specific times of the year. These loans can be a big help during periods of high demand.

Business loans are another product offered by Grama Vidiyal Micro Finance Ltd. These loans can be used to start or expand a business, providing entrepreneurs with the capital they need to succeed.

In addition to these loan options, Grama Vidiyal Microfinance also offers housing loans. This type of loan can be used to purchase or improve a home, providing individuals with a safe and secure place to live.

Grama Vidiyal Microfinance has partnered with Activists for Social Alternatives (ASA) to provide small loans to women without access to formal credit. This partnership has helped many women achieve financial stability and independence.

Some microfinance products offer a high degree of screening, such as Grama Vidiyal Micro Finance Ltd, which considers the cash flow of the proposed business activity and the previous repayment history of the client.

The Grama Vidiyal Micro Finance Ltd requires a member to have completed 3 cycles of General Loans during continuous association with the program to be eligible for a loan.

Not all microfinance products require such a high level of commitment, but it's clear that some lenders are taking a more cautious approach.

Here are some popular personal loan options offered by various financial institutions:

Grama Vidiyal's acquisition by IDFC Bank has significant implications for the microfinance industry and its customers.

IDFC Bank's acquisition of Grama Vidiyal is estimated to be nearly Rs 300 crore, making it a major investment in the sector.

This acquisition will lead to a 20-fold surge in IDFC Bank's customer base, reaching over a million customers.

IDFC Bank will now have access to Grama Vidiyal's network of 319 branches across seven states and 65 districts, allowing it to expand its reach and services.

Grama Vidiyal's loan recovery rate of 99.99% is a testament to its efficient operations and commitment to serving its customers.

IDFC Bank's goal is to create a mass retail bank within 5 years, and this acquisition is a significant step towards achieving that goal.

Grama Vidiyal Micro Finance Ltd offers a variety of financial products, but unfortunately, the article doesn't specify the interest rates for these products.

The company is a microfinance institution providing general, seasonal, business and housing loans.

In partnership with Activists for Social Alternatives (ASA), it has provided small loans to women without access to formal credit, but the article doesn't mention the interest rates for these loans.

Worth a look: Bandhan Bank Fd Interest Rate

IDFC Bank has acquired a 100% stake in Grama Vidiyal Microfinance, one of the largest microfinance institutions in the country.

Grama Vidiyal has over 12 lakh customers and an asset book of Rs 1,502 crore, with a loan recovery rate of 99.99%.

The acquisition will enable IDFC Bank to significantly enhance its network and reach, making basic banking services available to a large customer base.

Grama Vidiyal's network is spread over 319 branches across seven states and 65 districts of Tamil Nadu, Kerala, Karnataka, Puducherry, Maharashtra, Gujarat, and Madhya Pradesh.

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The deal is estimated at nearly Rs 300 crore, which will lead to a 20-fold surge in IDFC Bank's customer base to more than a million.

Grama Vidiyal will become a dedicated Business Correspondent of IDFC Bank, helping to deepen reach and widen the delivery mechanism for banking services.

IDFC Bank aims to create a mass retail bank under 5 years, and this acquisition will create a platform for growth for their retail banking business.

Grama Vidiyal's 30-year-old company is known for its double-bottom-line approach, focusing on the sustainability of financial inclusion programmes and the development of women and their families.

Current customer households of Grama Vidiyal will benefit from IDFC Bank's full range of liability products, customised credit offerings, innovative digital services, and doorstep banking.

IDFC Bank has acquired 100% stake in Grama Vidiyal Microfinance, making it a wholly-owned subsidiary. This acquisition will help deepen reach and widen the delivery mechanism for banking services.

Grama Vidiyal will now act as a dedicated Business Correspondent of IDFC Bank, helping to make basic banking services available to a large customer base.