The micro-finance agency has 25,000 clients. Its outstanding loans have grown to nearly Rs 26 crore since the commencement of operations four months ago.
"Our business growth is much above expectations. We will need additional business capital in 2008-09. So, Equitas is planning for a second round of funding," Managing Director P N Vasudevan said.
The company had received nearly Rs 20 crore in the first round. Out of this, promoters and other investors chipped in Rs 13.5 crore and the remaining amount will be brought in shortly. Vasudevan said the company was in negotiations with various private equity firms whose response had been "positive".
Referring to lending for buying gold, Vasudevan said the yellow metal serves the twin purposes of being a gift (jewellery) item, and a valuable asset for cultural occasions and insurance in times of crisis. This lending for gold is expected to become operational in two weeks.
A company survey revealed that 60 to 70 per cent of the respondents indicated that they would avail of such a loan. Gold is a liquid asset that does not lose value with time and hence, people are able to raise money to meet their emergency needs.
The company follows the Grameen Model, propounded by Noble laureate Mohammad Yunus, with suitable adaptations. The customers would be formed into groups consisting of 5 members and 5 groups would be clubbed to form a centre.
