Beginning with an initial paid-up capital of Rs 20 crore, the NBFC, 'Microfintech', will lend microfinance with a maximum ceiling of Rs one lakh per entrepreneur. "We plan to float Microfintech in a couple of months and initially use to lend microfinance to one of our existing cluster development projects in Kerala and later on extend its services to our other projects," said Jagat Shah, chief executive officer of Global Network.
Global Network also takes up cluster development activities of SMEs through Cluster Pulse, its group company.
"The benefit of having a microfinance NBFC as a group company is that while we provide technical assistance and help these clusters find markets, both domestic and overseas to SMEs through Cluster Pulse, on the other hand we also make sure they don't fall short of finances for developing their businesses which we are sure will be repaid timely," said Shah.
