According to a recent press report banks have started lending to microfinance institutions (MFIs). The RBI has recently issued guidelines on microfinance lending inter- alia directing banks to resume lending to microfinance sector and treat them as priority sector advances.
Mr. Thomas, Managing Director of ESAF Microfinance said that the State Bank of India has sanctioned Rs. 45 crore and Central Bank of India has sanctioned Rs 20 crore to ESAF Microfinance, the largest MFI from Kerala with 4.5 lakh clients.
He said that the company was not affected by the AP crisis as it does not have any operations in Andhra Pradesh in spite of its presence in seven States. He also mentioned that that ESAF was one of the very few MFIs which received continuous support from banks even during the AP crisis.
Reports said that ESAF Microfinance and Investments (P) Ltd, is primarily engaged in providing micro-credit to the poorer sections through a network of 150 branches across the country. ESAF Microfinance currently has a membership of 4.5 lakh clients spread across 35 districts covering seven States with a total loan outstanding of Rs 210 crore. Its core products include income generation loan, general loan, nirmal loan, house construction loan, house repair loans etc.