Grameen Foundation : What we do : Social Business : Grameen Capital India
Grameen Capital India
Demand for microfinance among the poor far exceeds supply in India. Fewer than 10 percent of the 75 million households that could benefit have access. To serve this segment, the microfinance industry requires wider access to capital markets.
Grameen Capital India, a social businesses launched as a collaboration Grameen Foundation, IFMR Trust and Citicorp Finance India Limited, to enable Microfinance Institutions (MFIs) to develop wider access to the capital markets. GCI will implement innovative financing structures enabling Microfinance Finance Institutions (MFIs) and livelihood finance providers access this much-needed capital through:
- Securitization and syndication of microfinance loans and other innovative debt and equity solutions
- Proactive engagement with rating agencies and potential investors
- Arranging credit enhancement where necessary
- Capital advisory services to MFIs for raising low-cost on-lending funds
Scalability and sustainability are critical for microfinance to achieve its potential in India. For this, both the availability and the cost of funds are key concerns. GCI will focus on developing sophisticated and innovative financing structures that will allow Microfinance Institutions (MFI’s) to access available, untapped capital and grow themselves to cater to this large segment of the population.
Grameen Foundation : What we do : Social Business : Grameen Capital India