Madura Micro Fin expects to treble rural presence in 3 yrs

Chennai-based Madura Micro Finance Ltd (MMFL) hopes to treble its reach in rural Tamil Nadu to 1.5 million women in the next two to three years.

The non-banking finance company that has been in existence in its current form for the last three years, has an outstanding portfolio of Rs 120 crore, which is also set to rise as its borrowers base would expand.

MMFL was operating as a division of Madura Bank until it was sold to ICICI Bank and later merged with it.

MMFL chairperson Tara Thiagarajan said the company would restrict its exposure to Tamil Nadu since higher density of borrowers in the state would help it achieve greater cost efficiencies which in turn would bring down the effective lending rate to borrowers.

 

The company lends at 17-19.5 per cent to its end consumers, she said. MMFL also has a recovery rate of 99.97 per cent.

Recently, Forbes magazine ranked MMFL as a leader among microfinance companies worldwide in terms of operational efficiency.