With the leasing business losing its lustre, Ahmedabad-based Arman Lease & Finance Limited is now venturing into microfinance. The company is also in the process of changing its name to 'Arman Financial Services Limited'.
"Leasing business had been flourishing in the early '90s when the company was incorporated. However, in the current times it has been to costly an affair for small sized companies like ours. Therefore, we are now venturing into microfinance and have applied for a name change," said Jayendra Patel, vice chairman and managing director of Arman Lease & Finance Ltd.
The company has also received a three times rating from M-CRIL, a rating agency. "While microfinance is prevalent in southern India, western parts like Gujarat and Rajasthan are still virgin markets for the business. We are going to focus strictly on people at the bottom of the pyramid," added Patel. The products will be designed to offer a minimum of Rs 6,000 for a period of 25 weeks as microfinance.
Arman Lease & Finance, which pegged a turnover of Rs 21 crore in the fiscal 2007-08, is targeting a disbursement of Rs 1 cr by the end of financial year 2008-09. Currently, the company has a paid-up capital of Rs 4.7 cr.
Explore Business Standard