BNP Paribas, a France-based bank, recently informed MicroCapital that it has issued a two-year loan to Arohan Financial Services in the amount of INR 650 million (USD 9.1 million). The Kolkata-based microfinance institution (MFI), is to repay the loan in eight quarterly installments.
Arohan was established in 2006 and is a member of the Aavishkaar-Intellecap Group. Its main products are loans for trading, services, sanitation and utilities. Most of these loan products carry terms of one to two years, have interest rates around 21 percent and are disbursed in sizes of INR 10,000 (USD 140) to INR 50,000 (USD 700). Arohan’s other loans are for solar products, telephones, bicycles, and small and medium-sized enterprise. The MFI also offers life insurance, e-commerce support and financial literacy training. As of July 2019, the MFI reports a portfolio of INR 4,392 crore (USD 617 million) outstanding to 2.1 million customers. Of these customers, 97 percent are women, and 81 percent live in rural areas. Arohan’s 644 branches span 13 states. The members of the Aavishkaar-Intellecap Group include “equity funds, a venture debt vehicle, a microfinance and advisory business including investment banking.”
BNP Paribas, which was formed when Banque Nationale de Paris (BNP) acquired a majority stake in Paribas in 1999, operates in 72 countries. As of December 2018, BNP Paribas had total assets of EUR 2.04 trillion (USD 2.29 trillion). As of August 2019, it has EUR 220 million (USD 246 million) invested in microfinance institutions, largely in India but also in 16 other low- and high-income countries.
Sources and Additional Resources
Information provided directly from BNP Paribas to MicroCapital
Arohan homepage
https://www.arohan.in/
BNP Paribas homepage
https://group.bnpparibas
BNP Paribas financials
https://invest.bnpparibas.com/en/consolidated-financial-statements
Aavishkaar-Intellecap Group profile
https://www.intellecap.com/group/
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