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After launching small finance bank, Esaf Microfinance & Investment will have 20% of its portfolio for MSMEs

Updated: Feb 23, 2017 06:35:27am
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After launching small finance bank, Esaf Microfinance & Investment will have 20% of its portfolio for MSMEs

Mumbai, Feb 23 (KNN) Esaf Microfinance and Investments Pvt. Ltd, which is planning to do a soft launch for its small finance bank operations, will have 20% of its portfolio for micro, small and medium enterprise (MSME) borrowers.

Esaf Microfinance and Investments Pvt. Ltd is planning a soft launch for its small finance bank operations on 11 March in Kerala. It will run a pilot in five branches.

Esaf received a go ahead from Reserve Bank of India (RBI) in November to start small finance bank operations.

According to a media report, K. Paul Thomas, chairman and managing director of Esaf said Esaf plans to have 20% of its portfolio for micro, small and medium enterprise (MSME) borrowers, 10% towards housing and agriculture and the remaining 70% towards microfinance borrowers in two years.

According to Thomas, discussions are going with financial technology companies that provide credit scores based on non-traditional platforms and will get finalized by next year. They will help in giving loans to MSME borrowers who do not have proof for source of income.

Esaf plans to target 3 million customers by financial year 2020.

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