Chennai: Jan 10, 2018: ESAF SMALL FINANCE BANK has entered a strategic MoU with Kinetic Green Energy and Power Solutions Pvt Ltd (Manufacturers of Eco Friendly Electric Rickshaws) at Pune for the financing of E Rickshaws in their domain operations spread in 13 States of India.
Ms. Sulajja Firodia Motwani (Mananging Director KGEPSL) and Mr George Thomas (Executive Vice President, ESAF Small Finance Bank) has signed the MoU on Tuesday, 9th January 2018 in Pune in presence of Mr Hyder Ali Khan Vice President, KGEPSL) Mr Reji K Daniel (Head, Sustainable Banking, ESAF Small Finance Bank) and Mr. S Jagtap (General Manager, KGEPSL).
“Urgent efforts are to be taken for stewardship of our planet earth. Clean Air has become crucial to all cities. Non pollutive mobility is the need of the hour for sustainable cities and the MoU is an embodiment of the bank’s commitment for work those who promote clean energy “said Mr George Thomas (EVP, ESAF Bank).
KGEPSL has a variety of E Rickshaws – both for passenger applications as well as commercial use. The bank will follow the JLG model with weekly instalments that will bring forth more discipline and ease of repayments for the potential loan takers. ESAF Small Finance Bank is currently spread in 13 states of India with a customer base of over 16 Lacs, mostly women from lower strata of society, now coming forward to the main stream of the society through the micro enterprises etc. that they run for livelihoods.
The MoU is strategic as this step will boost self-employment plans for several youths and women with green businesses. KGEPSL and ESAF SFB will also partner with NGOs for the promotion of these in several cities, starting with a clean energy loan mela in Nagpur shortly.
About ESAF Small Finance Bank
The journey of ESAF began in a small house named ‘Little’ at Thrissur in 1992. Contrary to what the name sounds, ESAF Society was launched with a bigger vision of sustainable holistic transformation of the poor and the marginalized. The success of Grameen bank in Bangladesh reinforced the vision of K. Paul Thomas the Founder and Managing Director of ESAF. In 1995, he launched Micro Enterprises Development (MED) services and it resulted in the formation of ESAF Microfinance and Investments Pvt. Ltd., in 2008. The increased focus on microfinance was inevitable as the founder was clear in his understanding of the importance of financial component in holistic economic development of the poor. Gradually, ESAF Microfinance earned its place among the top ten Microfinance institutions in India.
In 2015, the Reserve Bank of India, the financial regulator in the country has granted in-principle license to ESAF to launch a Small Finance bank. ESAF Small Finance Bank was one amongst the ten NBFCs to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a Small Finance Bank in the private sector. In November 2016, the final license was issued by the RBI. ESAF Small Finance Bank was incorporated on May 05, 2016, with its registered office in Thrissur.