How Midland Microfin Is Empowering Rural Women Through Group Lending

Introduction To Midland Microfin Ltd.

Midland Microfin Ltd. (“Midland”) is a Punjab-based Non-Banking Financial Company (NBFC) that has been helping low-income individuals since its incorporation in 1988. The company focuses on providing micro credit, small loans, to women borrowers using the Joint Liability Group (JLG) model. 

In this model, a group of women guarantee each other’s loans, making it easier to lend responsibly even in areas with limited formal banking access. This approach allows Midland to support financial inclusion by reaching women in rural and semi-urban communities who often lack access to traditional loans.

Midland operates across 12 states and 2 union territories through a strong network of over 517 branches. As of FY 2025, the company manages Assets Under Management (AUM) worth INR 2,288.2 crore, growing steadily at a CAGR of 26.2% since FY 2022. The company is promoted by Mr. Amardeep Singh Samra, a veteran in asset financing and leasing, who also plays a key role in shaping the microfinance industry through his position as a Director at the Microfinance Institutions Network (MFIN). With its focus on empowering women and building grassroots financial access, Midland is emerging as a trusted name in India’s microfinance sector.

Board Of Directors Of Midland Microfin Ltd.

Here is the list of Board of Directors of Midland Microfin Ltd., along with their designations:

1. Mr. Amardeep Singh Samra – Managing Director
2. Mr. Santokh Singh Chhokar – Non-Executive Director
3. Mr. Sachin Kamath – Nominee Director
4. Mr. Parveen Kumar Gupta – Independent Director
5. Ms. Kamna Raj Aggarwalla – Independent Director
6. Mr. Ashwani Kumar Jindal – Independent Director

Source: Midland Microfin Ltd.¹

Products Offered By Midland Microfin Ltd.

Midland offers a wide range of thoughtfully designed loan products to support women-led micro-enterprises and advance social development in underserved communities. Here’s a comprehensive look:

1. Business Loans (JLG Model)

Ticket Size: INR 11,000 – INR 80,000

Tenure: 12–36 months 

Unsecured loans given to groups of 5–7 women under the Joint Liability Group model. Ideal for purchasing stock, tools, and working capital.

2. Individual Income Generating Loans (Including Udaan & Dairy)

Ticket Size: INR 60,000 – INR 150,000

Tenure: Up to 24 months 

Personalised loans for existing borrowers aiming to scale up, common use cases include livestock (dairy ventures) and other income-generating businesses.

3. Social Impact Loans

A suite of green-financing products focused on community welfare-serving needs beyond traditional business credit:

• Water Supply & Sanitation Loan: INR 20,000 – INR 30,000; Tenure: 12–18 months. Supports improvements in village sanitation and clean water access. 
• Education Loan: INR 11,000 – INR 80,000; Tenure: 12–36 months. Helps finance higher education; tuition, books, tech essentials. 
• PM Svanidhi Loan: Up to INR 20,000; Tenure: 12–24 months. Designed to boost street vendor livelihoods. 
• Ajeevika Loan (NSFDC): INR 11,000 – INR 60,000; Tenure: 24 months. Targeted at SC/ST/OBC individuals for income-generation activities. 

4. Prayaas 2.0 (SIDBI) Loan

Ticket Size: INR 50,000 – INR 1,50,000

Tenure: 24 months

Offered via SIDBI partnership under the JLG framework, aimed at supporting micro-entrepreneurs in grassroots economic development. 

5. Dairy Loan

Ticket Size: INR 75,000 – INR 1,50,000

Tenure: 24 months

Enables expansion of dairy business with funding for cattle purchase and includes cattle insurance coverage. 

6. ICICI Unnati Loan (BC with ICICI Bank)

Ticket Size: INR 11,000 – INR 60,000

Tenure: 24 months

A Business Correspondent product with ICICI Bank, delivered via JLG to extend financial access in underserved regions. 

7. Sanitation and Cross-Sell Loans

Smaller-ticket loans for last-mile improvements and cross-sell products, such as paying for clean water facilities:

• Wash / Water Purifier Loans: INR 9,600 – INR 30,000; Tenure: 12–18/24 months. 
• Micro Credit Plus: Loans of INR 1,399 / INR 2,300 / INR 3,699 for essential consumer items. 

Summary of Product Strategy

Midland blends economic empowerment and social upliftment through its product range, targeting women micro-entrepreneurs with business capital as well as loans aimed at education, health, and sanitation. Its combination of JLG-based unsecured loans, individual dairy and loan enhancements, and Green Impact products makes it a trailblazer in inclusive finance.

Source: Midland Microfin.²

Midland Microfin Ltd. Customer Care

For any queries or support, Midland Microfin’s customer care team is here to help. You can reach them at 0181 – 5085555, 5086666 or email : info@midlandmicrofin.com.

Empowering Rural Women With Trusted Group Lending

At the core of Midland Microfin Ltd.’s business model is a strong commitment to empowering rural women through financial inclusion. The company follows the Joint Liability Group (JLG) lending methodology, which enables groups of women in rural and semi-urban areas to access micro-loans without needing any traditional form of collateral. 

In this model, a small group of five to ten women come together and apply for loans collectively. Each member is responsible not only for her own repayment but also shares responsibility for the other members' repayments, encouraging peer support and accountability.

This group lending approach does more than just provide access to credit, it builds community trust, financial discipline, and social empowerment. Most of Midland’s women borrowers use the funds for income-generating activities such as dairy farming, tailoring, handicrafts, small shops, or agriculture. These micro-enterprises not only increase household income but also boost women’s confidence and decision-making power within their families and communities.

Midland operates in low-income and underbanked regions through over 517 branches across 12 states and 2 Union Territories, ensuring that women in the remotest areas are not left behind. The company also conducts regular group training sessions, where borrowers are educated on loan usage, repayment schedules, and basic financial literacy. These sessions help ensure informed borrowing and build a foundation for long-term financial independence.

Through its trusted JLG model, Midland is not just giving loans—it is helping rural women build stronger futures, contribute to the economy, and gain control over their financial lives. In doing so, Midland is playing a key role in promoting gender-inclusive economic growth in India.

Also Read: Moneyboxx Finance: Tailored MSME Lending With Tech-Driven Edge

Key Strengths Of Midland Microfin Ltd.

Key Strengths of Midland Microfin Ltd. (Simplified)

1. Backed by Strong and Trusted Investors

Midland Microfin has the support of well-known institutional investors, which adds to its credibility and financial strength. Kitara Capital, a reputed private equity firm, owns about 33.0% of the company. ICICI Bank, one of India’s largest and most trusted banks, also holds an 8.0% stake. This strong investor backing gives Midland the financial stability it needs to grow and expand its microfinance operations across India.

2. Good Loan Quality With Low Bad Loans

Even though Midland lends mostly to low-income women borrowers in rural areas, it has managed to keep its loan book healthy. As of the latest data, its Gross NPA (GNPA) is just 1.5% and Net NPA (NNPA) is only 0.4%, a sign of careful and responsible lending. The company also regularly sells bad loans to an Asset Reconstruction Company (ARC), helping it keep its balance sheet clean and maintain strong asset quality.

3. Strong Debt Partnerships with Top Banks and NBFCs

Midland has built trusted partnerships with over 20 banks and NBFCs to raise debt. Some of these partners include SBI, Kotak Mahindra Bank, NABARD, Union Bank, Bank of Baroda, IDFC First Bank, Federal Bank, and Hinduja Leyland Finance. In fact, SBI sanctioned a INR 200 crore term loan for Midland in March 2024, showing strong lender confidence. 

These partnerships help Midland fund more microloans while keeping borrowing costs under control.

4. High and Consistent Collection Efficiency

Over the past 12 months, Midland has achieved a collection efficiency rate of over 92%, meaning most borrowers are paying back their loans on time. This is particularly impressive in the microfinance sector, where borrowers often do not have formal income documents. The company’s strong on-ground presence and regular borrower engagement help maintain this solid repayment performance.

Financial Snapshot Midland Microfin Ltd.

Source: Source: audited financials, credit rating reports

To arrange the capital, Midland Microfin Ltd. also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CREDIT ‘A-’ rated bonds of the company that offered fixed returns of up to 12.0%. To invest in similar, rated, regulated and secured fixed-income opportunities sign-up for Grip Invest today and start earning fixed returns:

<Explore Live Fixed Income Opportunities>

References:

1. Midland Microfin, accessed from: https://midlandmicrofin.com/board-of-directors/

2.  Midland Microfin, accessed from:https://midlandmicrofin.com/loan-products/

Want to stay at the top of your finances? 

Join the community of 4 lakh+ investors and learn more about Grip Invest, the latest financial knick-knacks, and shenanigans in the world of investing.

Happy Investing!

Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

Registered Address - 106, II F, New Asiatic Building, H Block, Connaught Place, New Delhi 110001