France-based BNP Paribas informed MicroCapital that today it disbursed a loan of INR 350 million (USD 4.9 million) to Fusion Microfinance, which offers microloans in amounts from INR 3,000 (USD 42) to INR 60,000 (USD 840) with terms of five months to two years. Fusion issues these loans in India to groups of five borrowers, with no collateral required. The loans carry annual interest rates of 21.5 percent to 22.5 percent, as well as fees of 1 percent plus the cost of obligatory insurance. For the 12 months ending March 2019, Fusion reports having disbursed INR 28 billion (USD 393 million) to 1.5 million customers, earning return on assets of 2.7 percent and return on equity of 17 percent.
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. During its 30 years of lending to microfinance institutions, BNP Paribas has issued debt totaling EUR 900 million (USD 990 million) reaching 1.8 million women and 200,000 men.
Sources and Additional Resources
Information provided directly from BNP Paribas to MicroCapital
Fusion homepage
https://fusionmicrofinance.com/
Fusion Annual Report 2018-19
https://fusionmicrofinance.com/pdf/Annual_Report_R2018-19.pdf
BNP Paribas financials
https://invest.bnpparibas.com/en/consolidated-financial-statements
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