|
SE Investments plans to expand its loan portfolio in micro finance, SME loan
Mumbai, August 5, 2010: SE Investments Ltd is one of the leading companies in the
category ‘A’
classified NBFC by RBI specialized in micro finance and other lending activities viz
hire purchase, personal loan, loan against property to both individuals and corporates.
The company has a dominant presence in the Northern part of the country specially
NCR. The company also offers very lucrative deposit schemes for individuals with an
average interest rate of over 12.5 percent.
The company’s average yield is between
18-28 percent. The loan amount for micro finance ranges between Rs 2,000-50,000, is
dominated by women and has very negligible number of defaults. The SME loan
portfolio is classified into business loans, which is secured in nature
with average maturity period of 12-36 months. The company has various collection
schemes such as daily, weekly and monthly on reducing balance where the average
yield is as high as 28 percent. The company has further plans to expand its loan
portfolio in micro finance and SME loan following its GDR issue where it has raised Rs
176 crore, resulting into a 5 fold expansion in net worth. The fixed deposits of the
company have been rated at "MA-" (Adequate Safety) by Icra. The company also
owns and manages the first private safe deposit locker vault at Agra equipped with the
state -of- art electronic security systems. The company has promoted a Non-
Government Organization in the name of ''Promotion of Women Entrepreneurs
Revolution'' (Power) for extending training and assistance to women folk specially in
rural areas through imparting vocational and professional training programmes.
|
|
According to Nabard, the current micro credit by micro financial institutions is at Rs
20,000 crore whereas the total micro credit demand is estimated at Rs 2.4 lakh crore,
creating a huge gap and scope for exponential growth in micro credit. Majority of this
demand is met through local money lenders charging very high interest rate up to 60
percent pa thus encouraging MFIs to further penetrate through low cost loan
offerings. The rural penetration in banks is less than 18 pc and the existing banking
policies are far from meeting their needs. About 75 million households live below the
poverty line and the annual credit demand by the poor exceeds Rs 70,000 crore, out
of which the cumulative disbursements is about Rs 8000 crore. Only 5 pc of rural poor
have access to microfinance and the share of microfinance in total credit of
Indian banking system is less than 1 pc. The Indian micro finance industry (MFI) would
cross 11 crore borrowers and Rs 135,000 crore ($30 billion) in loan portfolio by 2014.
|
