Tuesday, March 18, 2008

MFI gets funding from Unitus

MokshaYug Access (MYA) has received funding of Rs 8.35 crore ($2 million) from a private equity fund Unitus Equity Fund L P (UEF), a Unitus entity to support MFIs in Asia & LatAm.

MYA follows dual aim of developing rural entrepreneurial Self Help Groups & through them providing penetration to urban product & service providers.

Segments MYA focusses on are manpower, infrastructure and community participation- that can be used to increase efficiencies in the delivery of services such as dairy farming, livelihoods, healthcare and agribusiness to the rural households.

In 2006, it tied up with ICICI bank on a ‘partnership model’, through which the MFI identified the Self Help Groups (SHGs eligible for the loan. The bank then channeled the loan through the MFI, against 10 % of the amount held as security. This arrangement has been particularly cost-effective for lenders since loan identification, disbursement and recovery aspects are outsourced to MFIs who are know the local market.

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