MFI Report

Grameen Koota (GK) was visualized in December 1996, based on the book Give Us Credit by Alex Counts, which gives an account of the impact of micro-credit on the lives of the poor in Bangladesh. Highly inspirational stories of large numbers of individuals rising above the poverty line through the use of micro-credit, inspired the trustees of the T. Muniswamappa Trust to replicate a similar program for the benefit of the poor of Avalahalli and its surrounding villages, where GK is located- thus GK was born. It started operations in May 1999 with the help of seed-capital funding from Grameen Trust. Since then, GK has built its knowledge and expertise in the Indian micro- finance sector. Between 2000 and 2007, service offerings in Karnataka had contributed to over 150% CAGR growth in both client outreach and outstanding loan portfolio, making GK a strong regional player. GK reached 100,000 client mark in early 2007.Through the provision of small loans - approximately INR 7,500 (USD 150) to INR 35,000 (USD 700) - the company has helped women, who typically earn less than or between INR 50-100/day (USD 1-2/day), start income-generating activities such as trading, animal husbandry, agricultural production and transportation. Such a phenomenal success as a non-profit trust increased the team's ambitions. Being aware of the large demand- supply gap for micro-finance in India, and having operated within a continuously developing micro-finance ecosystem, the company understood that there was a tremendous opportunity to further alleviate poverty in both rural and urban areas. Recognizing that their capacity to rapidly scale up was limited because of the non-profit status, the organization in October 2007 transformed MFI business from a Registered Trust to a Non-Banking Financial Company (NBFC). Our Main challenges are attracting the funds at lower rate Cacher