MICROCAPITAL BRIEF: Indian NGO Gramalaya Creates Microfinance Institution Gramalaya Microfin Foundation

Gramalaya, an Indian nongovernmental organization (NGO), has launched a new microfinance institution (MFI), Gramalaya Microfin Foundation (GMF) that aims to “eradicate poverty through livelihood promotion activities through increased access to financial services” [1]. The primary focus of GMF will be building the economic empowerment of women by providing them with loans after they receive capacity-building services through Gramalaya Entrepreneurs Associates (GREAT), an organization also created by Gramalaya that offers training and financial linkage especially to women’s self-help groups. The loan amounts will range from INR 10,000 (USD 189) to INR 15,000 (USD 283) for a period of 12 to 18 months with an annual interest rate of 24 percent calculated on a reducing-balance method.

Institutional development services and management information system support will be provided to GMF by another MFI created by Gramalaya, Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN), which aims to provide “easy access to water and sanitation facilities at household level through micro credit.”

As of March 2009, Gramalaya reported total assets of INR 14.6 million (USD 277,200). As of 2011, GUARDIAN reported a gross loan portfolio of INR 51.2 million (USD 966,000) and approximately 24,400 borrowers. GUARDIAN does not report to the US-based nonprofit Microfinance Information Exchange (MIX).

By Nisha Koul, Research Associate

About Gramalaya: Gramalaya, established in 1987, is a nongovernmental organization (NGO) based in the Indian state of Tamil Nadu. It aims at “promoting water, sanitation, hygiene and overall improvement of the rural, urban, coastal and tribal population in India.” It subsidiaries include Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN) that provides “easy access to water and sanitation facilities at household level through micro credit;” Gramalaya Entrepreneurs Associates (GREAT) that offers training and financial linkage especially to women’s self-help groups; and Gramalaya Microfin Foundation (GMF) that aims to “eradicate poverty through livelihood promotion activities through increased access to financial services.” As of March 2009, Gramalaya reported total assets of INR 14.6 million (USD 277,200).

About Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN): Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN) a microfinance institution (MFI) created by Indian nongovernmental organization Gramalaya in 2007, aims to provide “easy access to water and sanitation facilities at household level through micro credit.” As of 2011, GUARDIAN reported a gross loan portfolio of INR 51.2 million (USD 966,000) and approximately 24,400 borrowers. Guardian does not report to the US-based nonprofit Microfinance Information Exchange (MIX).

Sources and Additional Resources:   

[1] Microfinance Gateway, “India’s Gramalaya Promotes New MFI for Livelihood Enhancement,” http://www.microfinancegateway.org/p/site/m/template.rc/1.9.56171/

MicroCapital.org story, March 31, 2010, “MICROFINANCE PAPER WRAP-UP: Women and Income-Generating Activities: Understanding Motivations by Prioritising Skill, Knowledge and Capabilities, by Thanuja Mummidi,” https://www.microcapital.org/microfinance-paper-wrap-up-women-and-income-generating-activities-understanding-motivations-by-prioritising-skill-knowledge-and-capabilities-by-thanuja-mummidi/

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

MicroCapital Universe Profile: Gramalaya Urban and Rural Development Initiatives and Network (GUARDIAN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Gramalaya+Urban+and+Rural+Development+Initiatives+and+Network+%28GUARDIAN%29

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