Village Financial Services to diversify into affordable housing and SME segments

KOLKATA: Microfinance firm Village Financial Services (VFS) is looking to diversify into affordable housing and small and medium enterprises space to de-risk its portfolio, managing director Kuldip Maity said.

The company is also planning to lend to individual borrowers with the joint liability group-based lending model starting to stifle down growth opportunities.

The Microfinance Institutions Network of MIFN, the self-regulator for the sector, suggested that maximum three lenders can lend to a single borrower with a cumulative cap of Rs 60000 under joint liability group model.

"Many of our existing borrowers need higher financial assistance but we can't lend to them because of the lending cap. We plan to offer them higher amount of loans individually," Maity said.

VFS has Rs 510 crore loan outstanding at the end of December while it looks to take it to Rs 700 core by March.

It is also ready to expand its footprint to Jharkhand and Madhya Pradesh soon.