Grama Vidiyal Microfinance


Grama Vidiyal Micro Finance Ltd (Grama Vidiyal) is a Tiruchirappalli-based NBFC which started its microfinance operations in early 2008. The company acquired the entire loan portfolio of Grama Vidiyal Trust, which was engaged in microfinance activities since 1996.

Grama Vidiyal Microfinance


Grama Vidiyal extends loans predominantly to women using the joint liability group model. The company’s operations are primarily concentrated in Tamil Nadu. The company has ventured into Maharashtra and Madhya Pradesh to improve upon its geographic diversity.

Performance on key parameters

  • Loan portfolio remained largely stable over the 2 years ended March 31, 2013
  • Has demonstrated strong portfolio performance, with 30+ dpd remaining at less than 0.5 percent over the past 30 months
  • Has relationships with nearly 20 lenders as on March 31, 2013. However, access to incremental funding for growth reduced significantly after the Andhra Pradesh crisis
  • Capitalization is adequate for the current scale of operations; however, gearing is higher than the industry average
  • Profitability is modest, reflected in return on managed assets of 0.4 percent during 2012-13. Ability to improve profitability over the medium term while reducing its margin to comply with revised regulations will be critical


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