MFI Grameen Koota to write-off bad loans to the tune of Rs.100-Rs.150 crore

0
678

Bengaluru-based Microfinance Institution (MFI) Grameen Koota could write-off bad loans to the tune of Rs.100-Rs.150 crore following the inability of borrowers to repay them.  The MFI, which has over 1.65 lakh members has outstanding loans amounting to Rs.3,075 crore, with around 3-5 per cent of this amount likely to be written-off.

Grameen-Koota
Grameen Koota primarily provides financial support to women from low-income households.

Women are the primary beneficiaries of loans offered by Grameen Koota, with collateral-free loans on offer to boost their livelihood. Demonetisation played a key role in the inability of borrowers to repay loans, with lack of money on the ground hitting the poor hard.

The board of directors will meet on May 17 to discuss the possibility of a write-off, with Grameen Koota looking to set aside a sum of Rs.100 crore for this purpose.

MFIs across the country typically see loan write-offs in the range of 1 to 10 per cent on account of non-payment.

Grameen Koota, established in 1996 saw Bangladesh’s Grameen Bank as an early investor, aiming to replicate the success of the Bangladeshi MFI model. In addition to offering products like income generation loans, family welfare loans, home construction loans, etc., it also provides insurance and pension options.

It also conducts workshops and organises healthcare programs. Currently operational in the five states of Chhattisgarh, Karnataka, Tamil Nadu, Maharashtra, and Madhya Pradesh, it has 393 branches and close to 5,000 employees.

All information, including but not limited to news articles, published on this website are strictly for general information purpose only. BankBazaarnews.com does not provide any warranty about the authenticity and accuracy of such information. BankBazaarnews.com will not be held responsible for any loss and/or damage that may arise or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for any product may vary from the information mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

Copyright reserved © 2018 A & A Dukaan Financial Services Private Ltd. All rights reserved.

LEAVE A REPLY

Please enter your comment!
Please enter your name here