MICROCAPITAL BRIEF: International Finance Corporation (IFC), ACCION Support Swadhaar in Expanding Microfinance for Women in Urban India

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and ACCION International, a private, US-based nonprofit organization, will advise Swadhaar FinServe Private Limited (SFPL), an Indian microfinance institution, on its expansion of financial services for women in urban slums of the following Indian states: Gujarat, Madhya Pradesh, Maharashtra and Rajasthan. IFC and ACCION will “help Swadhaar design, pilot and launch new products and modify financial services delivery by aiding in risk management” as well as “scale up, redesign systems and assist in product development to expand its outreach.” IFC will provide a third of the budget of USD 1.1 million, while ACCION and SFPL will cover the remainder [1].

As of 2010, SFPL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.5 million, a gross loan portfolio of USD 11.4 million, approximately 56,727 active borrowers, return on assets (ROA) of -5.9 percent and return on equity (ROE) of -11.5 percent.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About ACCION: ACCION International is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training to its clients. ACCION was founded in 1961 and issued its first microloan in 1973 inBrazil. ACCION’s partner microfinance institutions provide loans to men and women entrepreneurs in 22 countries in Latin America, Asia, Africa and theUnited States. As of 2010, ACCION’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.

About Swadhaar FinServe Private Limited (SFPL): Based in Mumbai,India, SFPL provides microcredit and microinsurance services to low-income groups. As of 2010, SFPL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.5 million, a gross loan portfolio of USD 11.4 million, 56,727 active borrowers, return on assets (ROA) of -5.9 percent and return on equity (ROE) of -11.5 percent.

Sources and Resources:

[1]International Finance Corporation (IFC): “IFC, ACCION Support Swadhaar to Expand Microfinance in India’s Urban Slums.”,   http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/12F11E47C04B32ED852579A300418815?OpenDocument

MicroCapital.org Article, April 27, 2011, “Indian Microfinance Institution Swadhaar Finserve Private Limited (SFPL) Reports Serving 51,500 Clients in 2011, Earns Honors in Smart Campaign’s Call for “Appropriate Collections Practices Tools”, https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-swadhaar-finserve-private-limited-sfpl-reports-serving-51500-clients-in-2011-earns-honors-in-smart-campaign%E2%80%99s-call-for-%E2%80%9Cappropri/

MicroCapital.org Article, March 15, 2011, ACCION International Issues Credit Guarantees Totaling $1.5m to Indian Microfinance Institutions (MFIs) Swadhaar Finserve, Saija”, https://www.microcapital.org/microcapital-brief-accion-international-issues-credit-guarantees-totaling-1-5m-to-indian-microfinance-institutions-mfis-swadhaar-finserve-saija/

MicroCapital.org Article, July 15, 2010, “Swadhaar Finserve Private Limited to Received $5.9m from ACCION International, Unitus Equity Fund, Michael and Susan Dell Foundation, MicroVest, and Indian Family Trust and Swadhaar’s Promoter Group”, https://www.microcapital.org/swadhaar-finserve-private-limited-to-receive-5-9m-in-equity-from-accion-international-unitus-equity-fund-michael-and-susan-dell-foundation-microvest-an-indian-family-trust-and-swadhaar%E2%80%99s/

MicroCapital.org Article, June 16, 2010, “International Finance Corporatoin to Acquire 20% Stake in India-Based Microfinance Institution Swadhaar Finserve (SFPL)”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-to-acquire-20-stake-in-india-based-microfinance-institution-swadhaar-finserve-spfl/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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

MicroCapital Universe Profile: Swadhaar FinServe Private Limited (SFPL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Swadhaar+FinServe+Private+Limited

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

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