MICROCAPITAL BRIEF: IFMR Capital Securitizes $15m in Microloans Originated by Indian Microfinance Institutions (MFIs) Asirvad, Disha, Grameen Koota, Mimoza, Satin Creditcare, Suryoday, SV Creditline, Utkarsh

IFMR Capital, a private India-based company that aims to provide liquidity and debt capital to financial institutions that serve poor people, recently securitized a “multi-originator” portfolio of 49,881 loans with a total value of INR 511 million (USD 10.5 million). The securitization involved seven Indian microfinance institutions (MFIs) which are all registered as non-banking financial institutions (NBFIs): Asirvad Microfinance Private Limited, Disha Microfin Private Limited, Mimoza Enterprises Finance Private Limited, Satin Creditcare Network Limited, Suryoday Micro Finance Private Limited, SV Creditline Private Limited and Utkarsh Micro Finance Private Limited. The senior tranches of the securitization deal have been subscribed to by institutional investors and an unnamed commercial bank, and the junior tranche has been subscribed to by IFMR Capital.

Separately, IFMR Capital securitized INR 239 million (USD 4.9 million) in microloans from Indian MFI Grameen Financial Services Private Limited, popularly known as Grameen Koota. Unspecified NBFIs have invested in the senior tranche and IFMR has purchased the subordinated piece.

IFMR Capital is a subsidiary of IFMR Trust, which in turn is an affiliate of the Indian nonprofit Institute for Financial Management and Research (IFMR), a Chennai-based research and educational institution.

By Rohan Trivedi, Research Associate

About IFMR Capital:
IFMR Capital is a subsidiary of IFMR Trust, a private trust that aims to provide Indian enterprises with access to financial services. IFMR Capital’s goal is to provide liquidity and debt capital to the microfinance industry and other sectors that offer products and services for low-income households. IFMR Trust is an affiliate of the Indian nonprofit Institute for Financial Management and Research (IFMR), a Chennai-based research and educational institution.

About Asirvad Microfinance Private Limited:
Established in 2007, Asirvad Microfinance Private Limited is an Indian microfinance institution (MFI) that is registered as a non-banking financial institution (NBFI). As of March 31, 2011, Asirvad reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 23.9 million, a gross loan portfolio of USD 22.7 million, return on assets (ROA) of 4.22 percent, return on equity (ROE) of 16.7 percent and 219,000 active borrowers.

About Disha Microfin Private Limited:
Disha Microfin Private Limited is an Indian microfinance institution (MFI) that was founded in 2009 and is registered as a non-banking financial institution (NBFI). As of March 31, 2011, Disha reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 6.5 million, a gross loan portfolio of USD 5.4 million, return on assets (ROA) of 3.17 percent, return on equity (ROE) of 6.8 percent and 34,700 active borrowers.

About Grameen Financial Services Private Limited (GFSPL):
Grameen Financial Services Private Limited (GFSPL), popularly known as Grameen Koota, was founded in India in 1999 as a project under the nongovernmental organization T Muniswamappa Trust and today is an independent non-banking financial company (NBFC). GFSPL operates in Maharashtra, Karnataka and Tamil Nadu states and offers products and services such as housing microfinance, vocational training loans, workshops and educational centers. As of year-end 2009, GFSPL reports total assets of USD 68.1 million, a gross loan portfolio of USD 52 million and 352,648 active borrowers.

About Mimoza Enterprises Finance Private Limited
Established in 2006, Mimoza Enterprises Finance Private Limited is a microfinance institution (MFI) based in India. It provides loans and insurance to low-income clients with a focus on women. As of March 31, 2011, Mimoza reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 13.3 million, a gross loan portfolio of USD 11.3 million, return on assets (ROA) of 0.82 percent, return on equity (ROE) of 5.39 percent and 89,000 active borrowers.

About Satin Creditcare Network Limited:
Established in 1990, Satin Creditcare Network Limited is an Indian microfinance institution based in Delhi. As of March 31, 2011, Satin reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 66.4 million, a gross loan portfolio of USD 51.7 million, return on assets (ROA) of 0.86 percent, return on equity (ROE) of 4.82 percent and 251,000 active borrowers.

About Suryoday Micro Finance Private Limited:
Suryoday Micro Finance Private Limited is an Indian microfinance institution that provides loans and other financial services to low-income clients. Suryoday was established in 2008 as a non-banking financial institution (NBFI) and has its headquarters in Chennai. As of March 31, 2011, Suryoday reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 13.2 million, a gross loan portfolio of USD 10.8 million, return on assets (ROA) of 2.57 percent, return on equity (ROE) of 5.95 percent and 87,000 active borrowers.

About SV Creditline Private Limited:
SV Creditline Private Limited is an Indian microfinance institution (MFI) based in Gurgaon, Haryana, that provides loans and insurance to low-income households. As of March 31, 2011, SV Creditline reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9.8 million, a gross loan portfolio of USD 8 million, return on assets (ROA) of -14 percent, return on equity (ROE) of -33 percent and 63,000 active borrowers.

About Utkarsh Micro Finance Private Limited:
Utkarsh Micro Finance Private Limited is a microfinance institution (MFI) based in Varanasi, India. It aims to provide access to credit in the northern Indian states of Uttar Pratesh, Madhya Pradesh and Bihar. As of September 2011, Utkarsh does not report data to standard platforms such as the US-based nonprofit Microfinance Information Exchange.

Sources and Additional Resources:

[1] IFMR Capital Blog: “IFMR Capital completes its largest Multi-Originator securitisation transaction”, http://www.ifmr.co.in/blog/2011/09/21/ifmr-capital-completes-its-largest-multi-originator-securitisation-transaction/

MicroCapital.org story, August 9, 2011: “MICROCAPITAL BRIEF: Indian Microfinance Institution Satin Creditcare Reports $22m in Capital Raises, Securitizations; Upgraded by CARE Ratings to ‘MFI 2’”, https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-satin-creditcare-reports-22m-in-capital-raises-securitizations-upgraded-by-care-ratings-to-“mfi-2”/

MicroCapital.org story, June 3, 2011: “MICROCAPITAL BRIEF: Costs Rise for Indian Microfinance Institutions (MFIs) Looking to Securitize Loan Portfolios From 10% to Over 12%”, https://www.microcapital.org/microcapital-brief-costs-rise-for-indian-microfinance-institutions-mfis-looking-to-securitize-loan-portfolios-from-10-to-over-12/

MicroCapital.org story, May 24, 2011: “MICROCAPITAL BRIEF: IFMR Capital Structures $3.8m Securitization of Microfinance Loans Originated by Ujjivan Financial Services of India”, https://www.microcapital.org/microcapital-brief-ifmr-capital-structures-3-8m-securitization-of-microfinance-loans-originated-by-ujjivan-financial-services-of-india/

MicroCapital Universe Profile: IFMR Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFMR+Capital

MicroCapital Universe Profile: Asirvad Microfinance Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asirvad+Microfinance+Pvt+Ltd

MicroCapital Universe Profile: Disha Microfin Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Disha+Microfin+Private+Limited

MicroCapital Universe Profile: Mimoza Enterprises Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mimoza+Enterprises+Finance+%28Mimo%29

MicroCapital Universe Profile: Grameen Financial Services Private Limited (GFSPL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Financial+Services+Private+Limited

MicroCapital Universe Profile: Satin Creditcare Network Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Satin+Creditcare+Network+Ltd

MicroCapital Universe Profile: Suryoday Micro Finance Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Suryoday+Micro+Finance+Private+Limited

MicroCapital Universe Profile: SV Creditline Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SV+Creditline+Private+Limited

MicroCapital Universe Profile: Utkarsh Micro Finance Private Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Utkarsh+Micro+Finance+Private+Limited

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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