Microfinance Focus, September 12, 2011: Bangalore based Microfinance NBFC, Ujjivan Financial Services has received approval of Rs.100.50 Crores (USD 21 Million) funding from SIDBI and other public /private sector banks.

The Non-Banking Financial Company had earlier received funding of Rs.55 Crores (USD 11 Million) through two Non-Convertible Debentures (NCD) issues arranged by Standard Chartered Bank.

Ujjivan has begun 100% credit bureau checks for all loan approvals through multiple credit bureaus. Earlier this year, it became a member of CIBIL (Credit Information Bureau India Ltd) and Highmark. In July 2011, it signed up the membership agreement with Credit Bureau, Equifax.

Last month Ujjivan launched a new lending model called ‘My Loan’ under which the financial liability of defaulting customers is not borne by other group members. It is an adaptation of Grameen II model where customers are liable for their own repayments; the group has limited responsibility to help in case of absconding customers & deliberate defaulters.

Ujjivan Financial Services serves over a million clients and recorded a profit growth of 49%, and a loan portfolio growth of 69% over last year, to INR 6250 Million as on 31st March 2011. The PBT stands at INR 177.20 Million with a post-tax profit of INR 114.10 Million for the fiscal year 2010-11.