MSM Microfinance: Created To Cater To The Financial Needs Of The People In India

Mohan Kumar Subramanyam, Chairman & Managing Director

Mohan Kumar Subramanyam

Chairman & Managing Director

Microfinance Companies, also known as Non-Banking Financial Company - Micro Finance Institutions (NBFCMFIs) are considered a very important financial intermediary mainly for the underprivileged sectors in India. In a developing country like India, there is a need to support low-income families as well as uplift and provide them with a better standard of living by supporting them financially in a more efficient way, and there came the concept of "Microfinance". The microfinance segment has rapidly contributed to the economy of the country over the past few years. The success of NBFC-MFIs is primarily due to their presence in the last mile reach, lower cost, timely availability of credit, and strong risk management capabilities with a better understanding of customer segments.

About MSM Microfinance
MSM Microfinance (MSM) is a Non-Banking Financial Company Micro Finance Institution (NBFC-MFI) located in Chennai with financial support services to the low income people of India. “Our company is playing an essential role in the financial system of the country by bringing diversity, efficiency and promptly providing services in niche segments”, says Mohan Kumar Subramanyam, Chairman & Managing Director, MSM Microfinance.

Presently, MSM is operating in three states and one union territory with 40 plus branches
& 300 plus manpower. The firm’s AUM stood at Rs.200 Crore as on March 2023 which includes the balance sheet and off balance sheet put together. Now, the company is aiming to increase its presence in a minimum of 10 states with 175 plus branches in the coming years to build Rs. 1000 Crore AUM. MSM is a well rounded company in a high growth industry with a mission to maximize the value and growth rate of its stake holders.

The employees at MSM Microfinance are committed to high ethical practices & a code of conduct as prescribed by RBI guidelines pertaining to microfinance lending

As one of over ninety MFIs in India, MSM Microfinance strives to compete and keep above the rest by building a strong competitive edge. The company feels pride in itself for having a robust team, high value for ethics, respect for its customers, operational efficiency, optimal cost management, and much more. “Above all, our core competitive strengths, sound processes, and multifaceted information technology systems are unmatched by any other MFI in India", says Vasanth Vasu, Joint Managing Director, MSM Microfinance.

MSM is among very few entities in the microfinance space to introduce an app for its customers, after the first COVID wave. The company has a customizable parameter driven rating engine to assess the repayment capacity of the borrower for multiple products.

With a strong technology presence, MSM is in a position to deliver loans in a lesser turnaround time. MSM provides real time dashboard access to its partners to ensure transparency. The company is a double line enterprise, whose goal is to generate profits for providing returns to shareholders along with uplifting the bottom of the pyramid.

What the future holds for Microfinance in India
The current market penetration in the MFI space is approximately 30 percent. The market also offers a tremendous scope of reaching out to more clients and bridging the credit gap as per the India Microfinance Review published by MFIN. MSM Microfinance is looking forward to leveraging this opportunity. The Mission of MSM Microfinance is to maximize the value and growth rate of stakeholders in the coming future. MSM Microfinance is looking forward to a poverty-free India by providing timely and collateral-free loans to low-income people.