Microfinance companies are the financial institutions that offer small-scale financial services in both the forms – credit and savings, especially to the poor in rural, semi-urban and urban areas.
These financial services are meant to help them in undertaking economic activities, mitigating vulnerabilities to income shocks, smoothening consumption, increasing savings and supporting self-empowerment. There are a number of microfinance companies in India, which play some pivotal roles to the development of India.
India's microfinance sector is fragmented with more than 3000 microfinance companies (MGIs), NGOs and NGO-MFIs. The top 10 microfinance companies in India are estimated to account for almost 74 per cent of the total loans outstanding. It can be added here that the total loan outstanding of Indian microfinance sector lies between Rs. 160-175 billion. As on March 31, 2009, almost 17 Indian microfinance companies have more Rs. 1 million outstanding loans.
List of Top Microfinance Companies in India
Following are the top 10 Microfinance companies in India:
SKS Microfinance Ltd (SKSMPL)
| Name | SKS Microfinance Ltd |
| Headquarter | Secunderabad, Andhra Pradesh |
| Legal Status | Pvt. Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 1,413 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 18,227 |
| Borrowers (As on September 30, 2008) | 2,590,950 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 2,395 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 23.40 |
| OSS (%)(Apr 1-Sep 30, 2008) | 126.49 |
| Current Portfolio (%) (As on September 30, 2008) | 99.14 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 7.37 |
Spandana Sphoorty Financial Ltd (SSFL)
| Name | Spandana Sphoorty Financial Ltd |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company (NBFC) |
| Lending Model | JLG, Individual |
| Number of Branches | 696 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 11,987 |
| Borrowers (As on September 30, 2008) | 1,668,807 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 1,225 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 27.43 |
| OSS (%)(Apr 1-Sep 30, 2008) | 132.02 |
| Current Portfolio (%) (As on September 30, 2008) | 98.88 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 7.04 |
Share Microfin Limited (SML)
| Name | Share Microfin Limited |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company (NBFC) |
| Lending Model | JLG, Individual |
| Number of Branches | 666 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 8,568 |
| Borrowers (As on September 30, 2008) | 1,231,556 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 1,448 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 27.49 |
| OSS (%)(Apr 1-Sep 30, 2008) | 152.45 |
| Current Portfolio (%) (As on September 30, 2008) | 99.32 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 5.03 |
Asmitha Microfin Ltd (AML)
| Name | Asmitha Microfin Ltd |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 363 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 4,944 |
| Borrowers (As on September 30, 2008) | 694,350 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 475 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 17.43 |
| OSS (%)(Apr 1-Sep 30, 2008) | 121.04 |
| Current Portfolio (%) (As on September 30, 2008) | 99.80 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 9.92 |
Shri Kshetra Dharmasthala Rural Development Project (SKDRDP)
| Name | Shri Kshetra Dharmasthala Rural Development Project |
| Headquarter | Dharmasthala, Karnataka |
| Legal Status | Trust |
| Lending Model | SHG |
| Number of Branches | 22 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 4,060 |
| Borrowers (As on September 30, 2008) | 612,482 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 157 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 12.02 |
| OSS (%)(Apr 1-Sep 30, 2008) | 100.46 |
| Current Portfolio (%) (As on September 30, 2008) | 99.68 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 29.81 |
Bhartiya Samruddhi Finance Limited (BSFL)
| Name | Bhartiya Samruddhi Finance Limited |
| Headquarter | Hyderabad, Andhra Pradesh |
| Legal Status | Public Ltd. Company, (NBFC) |
| Lending Model | Diversified |
| Number of Branches | 87 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 3,882 |
| Borrowers (As on September 30, 2008) | 457,668 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 317 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 17.89 |
| OSS (%)(Apr 1-Sep 30, 2008) | 108.97 |
| Current Portfolio (%) (As on September 30, 2008) | 99.00 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 11.59 |
Bandhan
| Name | Bandhan |
| Headquarter | Kolkata, West Bengal |
| Legal Status | Society |
| Lending Model | JLG |
| Number of Branches | 385 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 3,389 |
| Borrowers (As on September 30, 2008) | 851,713 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 435 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 26.32 |
| OSS (%)(Apr 1-Sep 30, 2008) | 175.40 |
| Current Portfolio (%) (As on September 30, 2008) | 99.92 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 7.07 |
Cashpor Micro Credit (CMC)
| Name | Cashpor Micro Credit |
| Headquarter | Varanasi, Uttar Pradesh |
| Legal Status | Section 25 Company |
| Lending Model | JLG |
| Number of Branches | 247 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 1,431 |
| Borrowers (As on September 30, 2008) | 303,935 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 93 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 28.78 |
| OSS (%)(Apr 1-Sep 30, 2008) | 109.71 |
| Current Portfolio (%) (As on September 30, 2008) | 98.00 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 14.72 |
Grama Vidiyal Micro Finance Pvt Ltd (GVMFL)
| Name | Grama Vidiyal Micro Finance Pvt Ltd |
| Headquarter | Tiruchirappalli, Tamil Nadu |
| Legal Status | Pvt. Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 126 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 1,316 |
| Borrowers (As on September 30, 2008) | 288,311 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 231 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 32.46 |
| OSS (%)(Apr 1-Sep 30, 2008) | 141.53 |
| Current Portfolio (%) (As on September 30, 2008) | 99.54 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 4.95 |
Grameen Financial Services Pvt Ltd (GFSPL)
| Name | Grameen Financial Services Pvt Ltd |
| Headquarter | Bangalore, Karnataka |
| Legal Status | Pvt. Ltd. Company (NBFC) |
| Lending Model | JLG |
| Number of Branches | 62 |
| Loan Outstanding (Rs. Mn) (As on September 30, 2008) | 1,287 |
| Borrowers (As on September 30, 2008) | 153,453 |
| Net Worth (Rs. Mn) (As on September 30, 2008) | 127 |
| Portfolio Yield (%) (Apr 1-Sep 30, 2008) | 18.77 |
| OSS (%)(Apr 1-Sep 30, 2008) | 106.41 |
| Current Portfolio (%) (As on September 30, 2008) | 99.98 |
| Debt to Net Worth (Times) (As on September 30, 2008) | 10.51 |