It is often seen that large financial institutions and banks tend to leave out regular individuals and small businesses, which really is a huge issue. Everybody needs basic banking and financial services these days, especially when you have a small business. Well, that’s precisely where Microfinance companies come into play. And thankfully, there are literally so many microfinance companies in India, but we aren’t here to talk about the average, we are here to introduce you to the top 10 leading microfinance companies in India as of 2024. These are the very microfinance companies that are in the business of actually making the lives of many individuals as well as small businesses a bit better by offering several basic and essential financial services. Alright, let’s get to the list then, shall we?
1. Equitas Small Finance Bank
Have you recently seen and thought about why exactly some small businesses in India are doing so well, exceptionally well actually? Well, that’s mainly because of many awesome microfinance and small finance banks and companies, just like Equitas Small Finance Bank. For those who don’t know, Equitas Small Finance Bank actually took off back in 2007 in Chennai. Look at them now though, they help more than three million people in 17 states. It’s not just about giving out microloans, they also help people get loans for things like homes and business vehicles, which is great for the local economy. Talking about how fast are they growing, well, they have a market value of INR 7,500 crores by 2024.
2. Bandhan Bank
Have you ever seen the advertisements of Bandhan Bank, those are kinda nostalgic, right? And yes, microfinance is where they really made their name. They began in 2001 and were given a banking license in 2015. They are based in Kolkata and work to bring banking services to rural and semi-urban areas, which is a big part of what work they do in India. They provide small loans, savings accounts, and insurance. They’ve made a big difference in financial participation and now have a market value of about INR 55,000 crores.
3. Bharat Financial Inclusion Limited (BFIL)
The company BFIL, which used to be called SKS Microfinance, was one of the first in its field. They’ve been in business since 1998 and are based in Hyderabad. Microcredit services have been helping low-income families for more than 20 years. To put it into perspective, well, these services focus on things like hobbies that make money, emergency loans, and home improvement loans. They’re very popular with women business owners in rural areas. They’re still at the top of the financial inclusion game, even though their market cap is INR 9,000 crores.
4. Arohan Financial Services Limited
First of all, did you even know Arohan Financial Services is part of the renowned Aavishkaar-Intellecap Group? Yes, that’s one of the main reasons why they hit it so big in India, especially in the field of microfinance. Beginning in Kolkata in 2006, their goal is to serve economically underprivileged people in many states of the country. With their microloans, they address everything, you know, from business development to healthcare. They also have pension plans and micro-insurance, so acting as a one-stop shop for financial services.
5. Ujjivan Small Finance Bank
Opened in 2017, Ujjivan Small Finance Bank is one of the younger players but is already making a big difference. How exactly? Based in Bengaluru, they help people who don’t have bank accounts or don’t have enough money in their accounts. They have a lot of different banking service options, like insurance, micro-loans, and savings accounts. Simply put, they are doing an excellent job of spreading financial literacy, with a market cap of INR 10,000 crores.
6. Janalakshmi Financial Services (Jana Small Finance Bank)
From 2000, Jana Small Finance Bank, originally Janalakshmi Financial Services, has been a pillar of microfinance in the country. From Bengaluru, Janalakshmi provides a selection of financial products meant to make low-income households better off, you know? Their focus on company growth, education, and healthcare loans as well as savings and insurance products helps them to lead in financial inclusion. All in all, Janalakshmi’s influence is significant given a market capitalization of INR 5,000 crores.
7. Spandana Sphoorty Financial Limited
Founded in 1998 and with its headquarters in Hyderabad, Spandana Sphoorty has a history of uplifting the underprivileged, and that too for a long time now. Emphasizing microloans for healthcare, education, and business development, Spandana has achieved notable progress toward financial inclusion, especially for rural women. Spandana Sphoorty Financial Limited has a market capitalization of INR 4,500 crores, hence their influence is really significant.
8. Satin Creditcare Network Limited (SCNL)
Based in New Delhi, Satin Creditcare Network Limited has been a microfinance trailblazer since 1990. From income-generating projects to emergency and house improvement loans, SCNL provides a spectrum of microloans. Additionally offering pension products and micro-insurance helps to improve the financial stability of economically poorer areas in the country. All in all, SCNL is a major participant in the microfinance sector having a market capitalization of INR 3,000 crores.
9. CreditAccess Grameen
Operating from Bengaluru with a presence in 367 districts across 16 states, CreditAccess Grameen is among the titans in the microfinance scene of the nation as of 2024. Recognized for using data analytics and digital technologies, CreditAccess provides a range of loans catered to low-income customers. With a market capitalization of INR 15,000 crores, their creative strategy and broad influence help them to lead in financial inclusion.
10. BSS Microfinance Limited
Not least of all, since 1999 Bengaluru-based BSS Microfinance Limited has been changing things. Originally just a trust, BSS switched to microfinance in 2008 with an eye toward empowering women via financial management. Operating in Maharashtra, Karnataka, Tamil Nadu, and Madhya Pradesh, BSS provides loans to help financially left out people better their quality of life.
Conclusion
There you have it. So, from now on, whenever you are in need of banking or basic financial services, you can definitely check out these top microfinance companies, especially if you feel left out when running a small business or can try the Nidhi companies for financial services.
