Microfinance is catching the attention of major investors ranging from Ratan Tata to Ananya Birla and now a fully integrated tech-based microfinance provider is appearing in the horizon promising only online service to customer removing host of field officers, which may make it attractive to urban poor and low-income households.
Inditrade, hitherto confied to financial services, has unveiled a new microfinance business venture called Inditrade Microfinance, with its inaugural operations confined to Maharashtra’s Solapur, Pandharpur, Barshi and Latur over the next three months, after which it is eyeing expansion into Tamil Nadu’s Chennai, Coimbatore and other major cities.
“Inditrade Microfinance will be focussed on urban areas and not on rural as there are enough players doing that… The company plans to create a loan book of ₹100 crore by this fiscal end,” said Sudip Bandyopadhyay, Chairman of Inditrade, in an exclusive to BusinessLine.
Explaining the modus operandi of Inditrade Microfinance, Bandyopadhyay said it would be a wholly digitised loan disbursement and collection process from client prospecting, eKYC, tracking GPS locations, credit check, and money transfer to bank accounts, which means thousands of field officers who work for microfinance organizations in vast countryside will have to buckle up for their jobs soon.
However, the move towards digitization is on the rise in the last five years since the AP Microfinance crisis in 2009. All big Microfinance institutions have already turned digital though few of them offer discounted interest rates to their customers citing huge expenses and salaries for the field staff.
Since Inditrade is focusing on urban areas, Ujjivan, Janalakshmi and Muthoot will be in the front facing the impact.