MICROCAPITAL BRIEF: Indian Microfinance Institutions Cashpor, Utkarsh Use Technology to Improve Efficency

Nonprofit Indian microfinance institution (MFI) Cashpor Micro Credit and Indian non-banking finance company (NBFC) Utkarsh Microfinance Private Limited each have implemented technology-based procedures to improve efficiency. Cashpor, with the support of Atom Technologies, an Indian mobile service provider, has established a mobile-based payment and reporting system to replace paper-based processes and streamline data entry. Field officers use handsets to enter and upload client information such as meeting attendance records, amounts collected and requests for new loans. To minimize data transfer needs, the handsets only access data for the centers under their jurisdiction.

Utkarsh has established a grievance redressal system through which clients can call in concerns and receive information via a toll-free telephone line.

As of March 31, 2012, Cashpor reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 73.5 million, a gross loan portfolio of 70 million and 500,000 active borrowers. As of December 31, 2011, the institution reported return on assets (ROA) of 2.5 percent and return on equity (ROE) of 35.4 percent. As of March 31, 2012, Utkarsh reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 30.1 million, a gross loan portfolio of USD 25.1 million and 169,000 borrowers. As of December 31, 2011, Utkarsh reported return on assets (ROA) of 2.25 percent and return on equity (ROE) of 6.04 percent. Neither institution accepts deposits.

By Nicole Boyd, Research Associate

About Cashpor Microcredit
Cashpor Microcredit is a nonprofit microfinance institution that provides microfinance services to women living below the poverty line in the Indian states of Uttar Pradesh and Bihar. As of March 31, 2012, Cashpor reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 73.5 million, a gross loan portfolio of 70 million and 500,000 active borrowers. As of December 31, 2011, the institution reported return on assets (ROA) of 2.5 percent and return on equity (ROE) of 35.4 percent. It does not accept deposits.

About Utkarsh Micro Finance Private Limited (Utkarsh)
Utkarsh Micro Finance Private Limited (Utkarsh) is a microfinance institution (MFI) based in Varanasi, India. It provides loans to borrowers in states of northern India such as Bihar, Madhya Pradesh, Uttar Pradesh, and Uttarakhand. As of March 31, 2012, Utkarsh reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 30.1 million, a gross loan portfolio of USD 25.1 million and 169,000 borrowers. As of December 31, 2011, the institution reported return on assets (ROA) of 2.25 percent and return on equity (ROE) of 6.04 percent. It does not accept deposits.

Sources and Additional Resources:

Forbes India. “Innovations in Micro Finance: Field notes from Eastern Uttar Pradesh,” http://forbesindia.com/blog/economy-policy/innovations-in-micro-finance-field-notes-from-eastern-uttar-pradesh/

MicroCapital. April 19, 2013, “MICROCAPITAL BRIEF: Utkarsh Raises $3.7m in Equity from Aavishkaar Goodwell, International Finance Corporation, Norwegian Microfinance Initiative,” https://www.microcapital.org/microcapital-brief-utkarsh-raises-3-7m-in-equity-from-aavishkaar-goodwell-international-finance-corporation-norwegian-microfinance-initiative/

MicroCapital. April 20, 2011, “MICROCAPITAL BRIEF: Social Venture Capital Firm Dia Vikas Capital Makes Investments Totaling $6.1m in Indian Microfinance Institutions (MFIs) BWDA Finance Limited, Rashtriya Gramin Vikas Nidhi North East, ESAF Microfinance and Investment Private Limited, Cashpor Microcredit,” https://www.microcapital.org/microcapital-brief-social-venture-capital-firm-dia-vikas-capital-makes-investments-totaling-6-1m-in-indian-microfinance-institutions-mfis-bwda-finance-limited-rashtriya-gramin-vikas-nidhi-north-e/

MicroCapital Universe: Cashpor Microcredit https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cashpor+Microcredit

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

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