Reliance Capital, the financial services division of Anil Dhirubhai Ambani Group, has made announcement about the launching of its joint venture (JV) microfinance initiative (MFI) in two states including Gujarat and Maharashtra.

The company has decided to follow this up with a national rollout.

In order to increase penetration of microfinance services, Reliance Capital has joined hands with two Gujarat-based microfinance institutions, MAS Financial Services Ltd and Vardan Trust.

During the initial stage, Reliance Capital will fund MFI’s in Gujarat as well as Maharashtra and after that have a national presence.

While handing over the first lot of cheques, Mrs. Tina Ambani stated, “Our vision is to provide access to finance at the grassroots level by partnering with MFIs, serving the rural and semi-urban areas. This initiative is in line with the group’s commitment to play a serious role in bringing value to the lives of the underprivileged and the aged in India.”

K. V. Srinivasan, Reliance Consumer Finance’ Deputy CEO said, “The initiative envisages lending to MFIs, which would then be on-lending finances to self help groups, individuals and joint liability groups as per their norms.”

Mukesh Gandhi, director of MAS Financial Services said, “This unique partnership will help us in optimally utilising our expertise in distribution of credit to small enterprises for income generation activities, consumption and emergency needs.”

With 61 branches across Gujarat, MAS Financial Services offers services to more than 2,50,000 customers in the urban, semi-urban and rustic markets.

Vardan Trust provides microfinance to agriculturists, small shopkeepers, artisans, small enterprise workers and individuals engaged in animal husbandry.