Though the Budget has not made any direct impact on the microfinance industry, the overall proposals support the long-term growth of the industry, Kuldip Maity, MD & CEO, Village Financial Services Pvt Ltd, said.
Village Financial Services is a microfinance company registered as an NBFC. It started microfinance operations in the 2005-2006 and is headquartered in Kolkata (West Bengal).
The proposals focus on asset creation in the agricultural sector by providing long-term credit refinancing through cooperative credit structure and regional rural banks; enhancing Nabard’s Rural Infrastructure Development Funds (RIDF), linking MGNREGA employment with the agriculture sector and so on.
“The emerging producers’ cooperatives, expected to generate livelihood options, by blending various forms credit and other business development services. This is definitely good news for the microfinance Industry,” Maity said.