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Ujjivan posts profits and reduces interest rates on micro loans


Ujjivan Financial Services, a microfinance institution (MFI), recorded its first year of profitable operations with a post-tax profit of Rs.9.63 Crores in the financial year 2009-10. Ujjivan has wiped out the accumulated losses of Rs.5.85 Crores of the first four years of start-up operations and transferred Rs.1.9 Crores to Statutory Reserves.

Ujjivan started operations in Bangalore in November 2005 under the guidance of Grameen Bank of Bangladesh. It now serves over 650,000 urban and semi-urban poor customers in 16 states across India including 89 districts through 250 branches and 3000 employees. In the last 5 years, Ujjivan has disbursed Rs.1009 crores of loans with a repayment rate of 98.96%.

Ujjivan posts profits and reduces interest rates on micro loans

Mr. Samit Ghosh, Managing Director, Ujjivan said, “We have transformed from a start-up to a mature social enterprise in the year 2009-10. With maturity comes responsibilities and we hope we have delivered against these objectives to the satisfaction of all our stakeholders.”

Extending further benefits to its customers after the first year of profitable operations, the Ujjivan Board also reduced loan interest rates. “As a company committed to our social mission and double bottom line, it is our obligation to not only pass on the benefits of scaling up to our customers but to also share our profitability in servicing the poor”, Mr. Ghosh added. The reduction in interest rates ranges from 2.9 – 1.9% p.a. effective July 1, 2010, for all new loans or renewals:



The highlights include:

1. Bonus for its employees who have built the Company over the last 5 years

  • A maiden token dividend of 2% subject to shareholders’ approval.
  • Rs.31.5 lakhs allocated to a social development fund for projects to be undertaken by the branches along with the customers.
Sushma Singh

Sushma Singh

Sushma is an expert in online money-making strategies with extensive experience in business. She has spent a lot of time researching and writing about the ever-changing world of money-making games and websites, making her an expert at finding ways to make money online.

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