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Sidbi likely to revamp microfinance equity fund scheme
November 08, 2022
The Microfinance Institutions Network (MFIN) is in talks with Sidbi to revamp the fund, MFIN chief executive Alok Misra said.
Misra said that the condition of the smaller MFIs has not improved significantly, but is now better placed than their situation one year after the pandemic when they faced severe liquidity crunch.
“We are now geared to assist the sector in its next phase of progression through mainstreaming of informal micro-enterprises who would be the real engines of growth,” Sivasubramanian Ramann, Sidbi chairman was quoted as saying at an event to unveil MFIN’s second microfinance review report.
The India Microfinance Equity Fund was a ₹300-crore quasi-equity and debt facility targeted to support smaller MFIs. Sidbi had committed ₹200 crore to 66 MFIs till March 2019 and disbursed ₹144 crore. After that, the fund became largely inactive.
Capital from Sidbi would help them to leverage and sustain. MFIN took various other initiatives like the Impetus platform to assist small MFIs raise funds.
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