Reliance Capital enters microfinance market

03 March 2008

Mumbai: Reliance Capital, the financial services arm of Anil Dhirubhai Ambani Group, today announced the launch of its joint venture microfinance initiative in two states. The company plans to follow this up with a national rollout.

Reliance Capital has teamed up with MAS Financial Services Ltd and Vardan Trust, two Gujarat-based microfinance institutions, to offer microfinance services.

Reliance Capital plans to fund microfinance institutions initially in Gujarat and Maharashtra, before spreading out on a national scale.

"Our vision is to provide access to finance at the grassroots level by partnering with MFIs serving the rural and semi-urban areas. This initiative is in line with the group's commitment to play a serious role in bringing value to the lives of the underprivileged and the aged in India," Tina Ambani, wife of group chairman Anil Ambani, said while handing over the first lot of cheques.

"The initiative envisages lending to MFIs, which would then be on-lending finances to self-help groups, Individuals and joint liability groups as per their norms," Reliance Consumer Finance' deputy CEO K V Srinivasan said.

"This unique partnership will help us in optimally utilising our expertise in distribution of credit to small enterprises for income generation activities, consumption and emergency needs," said Mukesh Gandhi, director of MAS Financial Services.