India: SAIJA–IDBI–MUDRA Ink Deal; Help Make PM's Dream of MUDRA Cards for Microf...

Jun 2015
India, June, 10 2015 - Bihar-based microfinance company, SAIJA Finance set a milestone once again in the sector as it entered into an MoU with IDBI Bank and MUDRA to distribute the ambitious and game-changing scheme of the Prime Minister to provide low cost funds to meet the working capital needs of micro entrepreneurs, freeing them from very high interest rates charged by local money lenders, which pushes small businesses into debt traps.

These debit cards, at a nominal 10% p.a. rate of interest to microfinance clients, shall act as a catalyst in improving the income and savings potential of the target recipients. This will also help fuel job creation and demand for goods and services in the economy.

Commenting on the deal, Mr SR Sinha, CMD, SAIJA Finance, said, "At SAIJA, we are committed to bring innovative solutions to meet the credit and allied needs in the twin states of Bihar and Jharkhand. The MUDRA Card is a harbinger of affordable funds at the doorsteps of the most vulnerable section of the Indian society."

"India today has 5.7 crore micro units who use funds of Rs. 11 lakh crore and employ 12 crore Indians whereas the larger industries employ only 1.2 crore," said the Prime Minister while inaugurating the MUDRA scheme earlier this year.

SAIJA Finance is an applicant for a small finance bank licence. Once approved, it plans to work in each district of Bihar and Jharkhand to provide small ticket loans of over 5,000 crore during the first five years of its operations. Deloitte consulting are the partners of Saija for the bank convergence.

Global microfinance major ACCION with a 50-year track record of converting NGOs into full service profitable commercial banks is a major stake holder in SAIJA Finance. Significant stakeholders in SAIJA Finance include prestigious names like Small Industries Development Bank of India (SIDBI), Commonwealth Development Corporation (CDC, UK) and the World Bank arm International Finance Corporation (IFC). IFC and CDC have invested through Pragati Fund.

Source : PR NewsWire

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