Asmitha Microfin Ltd.

Gross Loan Portfolio USD, 2010: 298.4 million

Number of active borrowers 2010: 1.3 million

Average loan balance per borrower USD, 2010: 222.4

Deposits USD, 2010: 0.0

Assets USD, 2010: 321.9 million

Number of depositors 2010: 0

Mission:

To mobilise resources in order to provide small loans to poor people, to establish sustainable income generating business enterprises

Address:

1-2-58, Plot No.1-3 N Block, Kakatiya Nagar Habsiguda

Hyderabad

Andhra Pradesh

500007

India

Phone:

+91 (0) 40 2715 7865

Fax:

+91 (0) 40 2715 3156

Email:

aml [at] asmithamicrofin [dot] com

Website:

www.asmithamicrofin.com

Main Funding Sources:

Loans

Shareholder Capital

Products and Services:

Loans

Products:

Group Lending
Individual Lending

Services Provided:

Business Development Services

Looking for (Investment Types):

Loans in Local Currency

Donations

Capacity Building Grants

Equity investments

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 2002

FYE:

31-Mar

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Poverty reduction	1
Growth of existing businesses	2
Gender equality and women's empowerment	3
Employment generation	4
Youth opportunities	5
Children's schooling	6
Health improvement	7
Housing	8
Water and sanitation	9
Improvement of adult education	10
+ Poverty targets
Very poor clients
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
Has a formal board committee that monitors social performance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit loans for Income Generating Activities
+ Savings products offered
+ Compulsory insurance products required
+ Voluntary insurance products offered
Voluntary credit life insurance
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
Business development services
+ Education services offered
Financial literacy education
+ Health services offered
+ Women's empowerment services offered
Leadership training for women
Women's rights education/gender issues training
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Outreach to women
Quality of interaction with clients based on client feedback mechanisms
Quality of social data collected
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution trains/educates clients regarding environmental improvements
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
Craft Silicon	Vendor
Crisil	Rating
FAO-GTZ MicroBanking System	Vendor
M-CRIL	Rating
MFIN	Network Affiliation
SA-DHAN	Network Affiliation

MFI Report

Select i

Social Performance Profile

Partnerships

At a glance

Contacts

MIX Market Data Updates

Share this Profile

Global Partners