Cochin, 18 September, 2010: Financial inclusion is a vital tool for enabling growth and equitable development in rural India, since access and availability of banking, insurance, payment and other financial services to the entire population is essential for the creation of an inclusive and efficient economy. This is also imperative for aiding the India growth story to be sustainable and all-encompassing. Magma Fincorp Limited, one of India's leading NBFCs, has increasingly been playing a crucial role to promote this cause.

Magma's growth is a reflection of India's new emerging entrepreneurs, spurred by economic growth across states and sectors. Magma caters to diverse financial needs of small entrepreneurs in rural and semi urban markets of India, where services from banks and institutions are in short supply.

Informal segment of customers including the first time buyers are an important group for Magma's contribution in financial inclusion. Over 50% of Magma's customers are first time buyers of an asset, who don't have access to regular banking services. A number of such prospective owners and entrepreneurs have no access to formal banks and institutions since they can neither comply with the paperwork required, nor provide the collateral security that most of these lenders demand.

Credit challenges including lack of suitable product offerings by banks and institutions, traditional credit processes and rigid risk norms, delinquency or risk aversion, high transaction costs and lack of banking services and cash collection are the key challenges to be overcomed to enable credit delivery in the rural parts of the country.

Magma has become a friend, financier and a guide to this disenfranchised community by financing the dreams of such customers and transforming vehicle drivers/machine operators into owners of truck, tractor, MUV and construction equipment.

In the ensuing years, Magma will continue to focus on the rural markets by penetrating deeper through efficient and effective use of processes and technology. Ensuring faster turn around time and reducing operating cost will remain a priority. The other core focus will be on superior underwriting and prudent credit mix. Magma will also continue with its branch banking model for superior customer service.

Magma presently has a pan India presence, with 166 branches spread across 20 states and 1 Union Territory. Its operations cover over 2200 business clusters, with over 77% branches in rural and semi urban markets. Magma values human capital and therefore treats the employees as its biggest asset and has a strong team of over 4700 trained people.