Mumbai: JSW Group chairman Sajjan Jindal's daughter-in-law Anushree on Tuesday announced a micro-lending venture to help uplift the underserved segments.
Her husband Parth Jindal is the chairman of Svamaan Financial Services, the newly-launched entity.
"This is a for-profit entity registered as an NBFC-MFI. I always wanted to do something for the society, hence this," Anushree told PTI over the phone.
Anushree has a background in accounting and finance and the idea of starting microfinance occurred while doing a course on rethinking financial inclusion at the Harvard Business School last year.
The company was incorporated last year and after getting regulatory approvals made its first loan disbursal on 14 January, she said, adding the immediate goal is to reach 1 lakh borrowers by 2021.
Initially, the venture will concentrate on livelihood loans of up to Rs 25,000 and will branch out into lending up to Rs 3 lakh to micro-enterprises soon, she said, adding the loans to MSMEs will be secured ones with collaterals.
She said family money has been put into the business as initial capital, which is as per the regulatory norms. Reserve Bank regulations require NBFC-MFIs to have Rs 5 crore in net owned funds.
The venture will initially be focusing on Maharashtra and Karnataka and has plans to enter Odisha and Chhattisgarh by 2020, Anushree said and maintains that it is good business to be in, pointing out to data on growth achieved by the industry in the last few years.
After achieving the initial target of 1 lakh borrowers, Anushree said, the company will be taking a call on further capital infusion.
Dinner table talk on finance is, however, limited as there are so many businesses ranging from steel to new-age initiatives like electric vehicles spearheaded by her husband or her mother-in-law's CSR activities that also have to be spoken about, she said.
It can be noted that Ananya Birla, the daughter of Aditya Birla Group chairman Kumarmangalam Birla, also runs an MFI. The RBI is uncomfortable allowing conglomerates to own universal banks.
Anushree said industry veteran Kiran Kumar has come on board as the chief executive last year itself and the immediate target is to build a 100-member team by March, which will be taken up to 250 by 2020.
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Updated Date: Jan 22, 2019 17:12:09 IST