Incofin cvso disburses a EUR 2 million to Light Microfinance, so the financial institution can continue to support its clients.
Light Microfinance reaches over 200,000 clients – exclusively women in rural and semi-urban areas. Loan sizes are small and used for productive purposes in the underserved markets of west India. The biggest group of their clients are dairy farmers (70%) who are part of local cooperatives. The collection centers in the villages are the places where those farmers can deposit the produced milk. The dairy sector in India cannot be underestimated. The country has the world’s largest dairy herd and is first among all countries in both production and consumption of milk.
Chauhan, for example, has been a member of Light Microfinance for over five years. As the primary wage earner of a six-member family, she was in dire need of income augmentation. She didn’t start in cattle rearing, but with the first of her loans from Light Microfinance, she started vegetable farming. Eventually, her business acumen enabled Chauhan to expand. Her income increased and she has even planned to hire two employees.
Light Microfinance offers a single loan product via a joint liability group model. Groups are typically made up of three to ten women. The financial institution constantly evaluates and adapts its single product offering to ensure that it remains relevant to the target client base.
Nasreenbano always wanted to support her family financially but didn’t have the means to do so. She came to know about Light Microfinance through other women in her village and joined a lending group served by the institution. She availed the loan to set up a power loom business, which provided her a good monthly income and gives her a strong say in the family decision-making.
Besides loans, Light’s product includes life insurance and medical insurance as well as financial literacy for all clients via group trainings.
Alex Jeffery, Investment Associate of Incofin Investment Management comments: “We are delighted to conclude this investment in Light Microfinance. We believe more and more underprivileged women will benefit fro mthis investment and improve their livelihood.“