The Grameen Crédit Agricole (GCA) Foundation and the Crédit Agricole Corporate and Investment Bank (CA-CIB) recently established a loan guarantee scheme in the amount of EUR 5.5 million (USD 6.1 million) on behalf of Fusion Microfinance Limited, a microfinance institution based in northern India. This agreement is part of a program to secure approximately EUR 12 million (USD 13.2 million) to assist Indian microfinance institutions that promote female entrepreneurship, contribute to the economic development of rural areas and support populations excluded from the traditional banking system. CA-CIB will arrange the funding, which will be guaranteed and tracked by the foundation.
Founded in 2010, Fusion loans to joint-liability groups of women, seeking to minimize over-indebtedness by training employees and prospective borrowers on the risks and responsibilities of borrowing. As of August 2019, the institution serves 1.7 million customers, all living in rural and semi-urban areas, via approximately 545 branches in 18 states. It has a gross loan portfolio of INR 29.7 billion (USD 418 million). The organization does not accept deposits.
Founded in 2004, CA-CIB is a member of the France-based Crédit Agricole Group. It specialises in capital markets transactions as well as investment and corporate banking. As of 2018, the organization has 51 million customers in 47 countries and a net banking income amounting to EUR 5.3 billion (USD 5.8 billion). Crédit Agricole Group has 51 million customers served at 10,700 branches, with EUR 1.6 trillion (USD 1.8 trillion) in assets under management.
GCA Foundation was launched in 2008 by the directors of Credit Agricole, another member of the Crédit Agricole Group, and Muhammad Yunus, the founder of the Grameen Bank of Bangladesh. The foundation provides funding and technical assistance to microfinance institutions and other social businesses with the aim of promoting financial inclusion and social entrepreneurship. As of August 2019, GCA Foundation has a portfolio of EUR 83.9 million (USD 93.6 million) supporting 81 partners in 38 countries in Africa and Eurasia. Its partners serve approximately 4.1 million customers, of whom 74 percent are women and 75 percent live in rural areas.
By Anna Gravois, Research Associate
Sources and Additional Resources
GCA press release
http://gca-foundation.org/news/During-the-first-quarter-the-Foundation-makes-three-new-investments-in-Asia
GCA partnership announcement
http://gca-foundation.org/news/the-foundation-and-credit-agricole-cib-promote-microfinance-in-india
Fusion homepage
https://fusionmicrofinance.com
CA-CIB homepage
https://www.ca-cib.com
GCA homepage
http://gca-foundation.org
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Loans $3.2m to Faten for Microfinance in Palestine
- MICROCAPITAL BRIEF: KosInvest Borrows $650k from Grameen Crédit Agricole for Microfinance in Kosovo
- MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Lends $525k to Smart Credit for Microfinance in Moldova
- MICROCAPITAL BRIEF: Mi-Bospo of Bosnia and Herzegovina Borrowing $2.2m from Grameen Credit Agricole Foundation for Microfinance Lending
- MICROCAPITAL BRIEF: Arnur Credit of Kazakhstan Borrows $3.3m from Grameen Crédit Agricole to Expand Access to Microfinance
