Midland Microfin Limited Unlisted Shares

About Midland Microfin

(i) Midland Microfin Limited (MML), founded in 2011, is the first Punjab-based microfinance institution (MFI). The institution focuses on financially and socially empowering women by providing small business loans. The Company is registered as an ‘NBFC – MFI’ with the Reserve Bank of India (RBI).

(ii) At present MML has got a network of 154 branches, which is spread out in 5 States and 1 Union Territory viz. Punjab, Haryana, Rajasthan, Uttar Pradesh, Bihar, and Chandigarh. In 2018-19, the company has opened 50 new branches and with an objective to increase the geographical diversification, the majority of the new branches during the year have been opened in the states of Eastern U.P. and Bihar.

(iii) In 2019, they have opened four Regional Offices in Jaipur, Chandigarh, Varanasi & Patna, to monitor the business progress effectively.

(iv) The core business philosophy of the company to have a stringent lending process and controls at every point of delivery which has enabled the company to maintain its asset quality. They had easily recovered their loans even during demonetization.

Type of Loan Products:

(i) Business Loan:

The company encourages entrepreneurship amongst women as a sustainable source of livelihood by providing business loans for working capital. Business Loans give economically active women access to finance in order to support their micro-enterprises.

They give Rs. 11,000-30,000 and 31,000-50,000 ticket size loan on interest rate of 25.20% for 1 year and 2 year, respectively.

(ii) Water Purifier Loan:

It was observed that people, especially in rural areas, spend a hefty amount of their money on their medical expenses. It not only causes a burden on their finances but is also too much bothersome. The quality of water in Punjab nowadays is not good and contains a lot of toxic elements that are hazardous for health, a water purifier has become the basic necessity of every household.

They give a loan in the range of Rs. 4200 to 8500, with an interest rate of 25.20%, for the duration of 6M, 9M and 11M.

(iii) Sewing Machine Loan:

To provide products and services of outstanding quality to our members, Midland Microfin Limited has collaborated with Greenlight Planet India Pvt Ltd., which is one of the leading Dealers & Manufacturers of Solar Products, to facilitate the services with the mission of Serving Members “Beyond Microfinance.

Loan Size of Rs. 3520 for an interest rate of 25.20%, for 6M, 9M and 11M.

(iv) Solar Lamp Loan:

To provide products and services of outstanding quality to our members, Midland Microfin Limited has collaborated with Greenlight Planet India Pvt Ltd., which is one of the leading Dealers & Manufacturers of Solar Products, to facilitate the services with the mission of Serving Members “Beyond Microfinance.

 Loan Size of Rs. 2899 for an interest rate of 25.20%, for 6M, 9M and 11M.

(v) Udaan-Individual Loan:

Udaan loan product is given to MML’s existing customers for working capital as well as a capital investment in their existing business. It is one of MML’s first few attempts to develop individual credit products for its loyal customers.

Loan Size of Rs. 60,000 to 1,00,000 for interest rate of 25.20%, for 2 years.

Facts Sheet:

(i) Having service in 15,734 Villages of India.

(ii) As of March 31, 2019, the borrower base of the Company is 2,96,238.

(iii) Registered growth of 92% in terms of total assets, with total assets amounting to Rs. 748 Crores as on March 31, 2019.

(iv) Opened 54 new branches in 2019.

(v) Loan portfolio of Rs. 549.07 in 2019, up from Rs.350.79 crores in 2018, a growth of 56.53%.