Social Issue

Two out of three people in India live in poverty, subsisting on less than $2 a day.

In this context, a large part of the population does not have access to financial services from the traditional banking sector, due to the absence of guarantees, warranties, or proofs of income. In addition to the high risk, transaction costs for small loans in rural areas also create obstacles for banks.

Microfinance has been key to generating opportunities in Indian households, especially for low-income women, but few entities have the mission of serving the most marginalised areas.

Our Response

Light Microfinance Private Limited is a microfinance institution whose mission is to serve microentrepreneurs with financial products and solutions. It works exclusively with women organised in groups, granting loans linked to the agricultural sector, small businesses, services, and other productive activities.

Headquartered in Ahmedabad, Gujarat, Light focuses primarily on 4 states in India (Gujarat, Rajasthan, Madhya Pradesh, and Uttar Pradesh), where there is a relatively high poverty rate. It started operations in this sector in 2014, after receiving the license from the Indian Reserve Bank to operate as a Non-Banking Finance Company – Microfinance Institution (NBFC – MFI).

Netri has collaborated with SIMA to co-invest through a participation agreement, in a non-convertible obligation.

Expected Social Impact

With this loan, it is estimated that Light will be able to provide more than 1,200 microloans to empower communities in India to generate income.