Centrum Capital to start microfinance business with focus on MSME lending

New Delhi, Nov 2 (KNN) Centrum Microcredit, subsidiary of Centrum Capital Ltd. is foraying into microfinance business. The company on Wednesday said that it had received license from RBI to start the microfinance business and is eyeing to have Rs. 1000 crore in its book across affordable housing, microfinance and SME (Small and Medium Enterprise) by March 2018.

Centrum Capital entered into affordable housing finance last year and has signed an agreement to acquire Indian microfinance business of South Africa-based FirstRand Bank which currently employs 3000 people and has around 7000 customers in Maharashtra.
Jaspal Bindra, executive chairman of Centrum Group said that microfinance segment is quite important as it is large and profitable and especially in the urban place there is strong possibility that some of these people would graduate and the company could  cross-sell other products to them like affordable housing and insurance.

According to Bindra the company had no plans to do wholesale banking and would focus on retail lending to MSME.

The company  will focus on extending loans to unserved and undeserved borrowers operating small businesses in semi-urban areas. (KNN/AG)