Credible Microfinance Pvt. Ltd.

“Financial Solutions for the poor”

India

Credible Microfinance Private Limited was established to give finance with reasonable rates of interest to poor
women who have the opportunity to earn a living through their own income generation activities. Bharat
Integrated Social Welfare Agency (BISWA), Credible’s parent organization, started its microfinance services
through SHGs in the district of Sambalpur, Orissa in the year 1995. Gradually its operation expanded to 30
district of Orissa. In April 2006, to facilitate future expansion, the chairman of BISWA promoted a Non
Banking Financial Company, Credible Microfinance Pvt Ltd, to transfer the microfinance operation of
BISWA to an NBFC. Credible then started is microfinance activities in Orissa from November 2006.

Highlights Key Indicators

• Equity Investors: Mr. K C Malick and Legal Status: NBFC
Bellwether Microfinance Fund (0.22 Foundation year: 1993
million € - 15 million INR.) Location: Sambalpur, Orissa, India
• Debt Fund from: Bellwether Clients number: 2,147 (March 2008)
Microfinance Fund Products:
• Last Year Revenue+ Projected Revenue: -Agricultural Loan
0.18 million € (12.09 million INR) -Income generation Loan
• Large existing infrastructure and client- -Livestock Loan
base through promoting institution % of product = MF: 100%
(BISWA) OLB: 0.28 million €(March 2008)
• Excellent portfolio quality and financial Required capital : 1.5 million € (debt),
sustainability (126% OSS) 0.74 million €(Equity)

Market Potential and Growth Prospects

BISWA is operating in 30 district of Orissa, working with 30,017 SHGs. As BISWA’s MF operation is currently being
transferred to Credible, as of now, CMPL has disbursed loans to 142 groups in two district of Orissa and is targeting to
disburse credit to 1250 SHGs by the end of this financial year. Through its five year growth plan, Credible targets a total loan
amount of 340 million INR (5.06 million €) with 44,200 members by 2010-2011.

Products and Services

Credible offers agricultural, income generating, and livestock loans which are all currently being monitored by BISWA staff.
All products are offered to women, start from INR 500 and increase to INR 25,000 (7.5€ - 373€), have a 20% interest rate and
have a 12-15 months repayment schedule depending on the loan.

Funding Strategy
At present, CREDIBLE has received debt support of 0.30 million € along with 49% equity investment from Bellwether along
with 0.15 million € equity from the staff of BISWA and 0.7 million € equity from other shareholders. Currently, Credible
Microfinance’s cost of funds is at 7.5% and plans to raise 1.5 million € by the end of this financial year. In order to create
efficiency and achieve high client outreach and profitability, Credible seeks strategic investors as well as long term debt. CMPL
expects to finance 90% of its total portfolio through debt funding and has also applied to NABARD for 0.15 million €
subsidized loan at 0% cost.

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SAMN South Asian Microfinance Network

 Credible Microfinance Pvt. Ltd.
“Financial Solutions for the poor”

Key Operations and Financial Indicators and Projections

Operational Data 2005 2006 2007 2008 2009 2010 2011

Outstanding Loan Balance(million €) - 0.457 0.284 1.49 3.26 6.24 11.182

Number of Active Borrowers - - 2,147 2,962 16,250 32,500 44,200

Active Borrowers/Credit Officer - - 1,074 1,481 8,125 10,833 11,050

Portfolio Outstanding per staff member (€) - 228,674 142,177 700,462 1,087,241 1,559,774 2,236,415

Average loan size (€) - - 213 96 86 100 141

% of female clients - 100% 100% 100% 100% 100% 100%

% of rural clients - 85% 73% 80% 80% 80% 80%

Financial Indicators

Operational Self Sufficiency - 46% 99% 126% 115% 110% 107%

ROA - 4% 14% 11% 8% 9% 8%

ROE - -9% -9% 4% 4% 8% 5%

CAR - 46% 52% 15% 29% 15 22%

PAR (30 days) - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Operating Expense Ratio - 176% 69% 26% 26% 25% 25%

Yield on portfolio - 4% 21% 9% 6% 7% 6%

MANAGEMENT AND STAFF NUMBER OF STAFF MEMBERS : 5

BRANCHES : 2 VILLAGES: 63
Mr. Asish Kumar Sahu, Manager of Operations
Relevant Experience in Microfinance and Livelihoods 2 Loan officers 2 Female staff
Rajashree Khuntia, Credit Officer
Relevant Experience in Microfinance and Social development
Sashank Sekhar Dalpat, Credit Officer, Relevant Experience
in Microfinance and Social development CONTACT DETAILS
On the board: Mr. Khirod Chandra Malick
Khirod Chandra Malick, Chairman BISWA Managing Director BISWA Campus, Danipali, Budharaja,
of the Board, Sambalpur, Orissa-768004
Balusu Venkata Narasimham, 09437056453
Investment Officer Bellwether, Nominee Director of the Board kc_malick@yahoo.com

SAMN South Asian Microfinance Network