Vedika Credit Capital: Expanding Financial Access Through Microfinance
Introduction To Vedika Credit Capital Limited
Vedika Credit Capital Ltd. is a Non-Deposit Taking, Non-Banking Financial Company (NBFC-MFI) that provides microfinance loans, micro-housing loans, and consumer durable loans to underserved communities. The company was initially registered as a Private Limited Company before converting into a Public Limited Company in November 1995. It received Reserve Bank of India (RBI) approval in March 1998 to operate as an NBFC. Vedika's transition into microfinance began in 2007, shifting from its earlier stockbroking business to focus on financial inclusion for low-income individuals and entrepreneurs. The company primarily offers Joint Liability Group (JLG) loans and Individual Loans, empowering women borrowers in compliance with RBI regulations.
Vedika Credit Capital has grown significantly, establishing a strong presence across seven states—Jharkhand, Bihar, West Bengal, Uttar Pradesh, Assam, Odisha, and Tripura. As of H1 FY2025, the company reported an Assets Under Management (AUM) of INR 1,412 crore, reflecting its steady expansion in the microfinance sector. The company operates 192 branches and employs over 1,600 professionals, ensuring accessible financial services to a vast customer base. Vedika has also secured funding from reputed institutional lenders, including SBI, NABARD, Tata Capital, IDBI, SIDBI, and InCred, strengthening its financial stability and lending capabilities. With a mission to promote financial empowerment and economic growth, Vedika continues to support small businesses and individual borrowers with affordable and accessible credit solutions.
Board Of Directors Of Vedika
As of the latest available information, the Board of Directors of Vedika Credit Capital Limited comprises:
- Mr. Gautam Jain: Managing Director
- Mr. Vikram Jain: Whole-Time Director
- Mr. Deep Kumar: Director
- Mr. Ummed Mal Jain: Director
These individuals bring a wealth of experience and expertise to the company's leadership.
Source: TeamVedika1
Products Offered By Vedika
Vedika Credit Capital Limited offers a range of financial products tailored to meet the diverse needs of its customers. Below is a detailed overview of each product:
1. Joint Liability Group (JLG) Loan
This loan is designed for groups of 3 to 6 women who share similar socio-economic backgrounds. These women come together to form a group and avail loans based on mutual guarantees. The JLG model promotes collective responsibility, ensuring that all members support each other in loan repayment. This approach not only facilitates access to credit for women entrepreneurs but also fosters community bonding and financial inclusion.
2. Micro Housing Loan
Aimed at individuals seeking to improve their living conditions, the Micro Housing Loan provides funds for home repairs, renovations, or expansions. This loan empowers customers to enhance their housing facilities, contributing to better living standards and overall well-being.
3. Micro Enterprise Loan
This secured lending product is targeted at micro-entrepreneurs requiring working capital to expand their businesses. The loan supports various business needs, such as purchasing inventory, upgrading equipment, or other operational requirements, thereby aiding in business growth and sustainability.
4. WASH Loan
The Water, Sanitation, and Hygiene (WASH) Loan is intended to finance improvements in water and sanitation facilities. This loan enables customers to invest in clean water access, proper sanitation, and hygiene infrastructure, leading to healthier communities and improved quality of life.
5. E-Rickshaw Loan
Catering to individuals interested in eco-friendly transportation solutions, the E-Rickshaw Loan provides financial assistance for purchasing electric rickshaws. This product supports sustainable livelihoods and promotes environmentally friendly transportation options.
Vedika Credit Capital Limited's diverse product offerings demonstrate its commitment to financial inclusion, community development, and environmental sustainability. By addressing various financial needs, the company plays a pivotal role in empowering individuals and fostering economic growth.
Also Read: Navi Finserv: Revolutionising Digital Lending With AI & Fintech
Innovation And Technology At Vedika
Vedika Credit Capital Limited (VCCL) is committed to leveraging innovation and technology to enhance its financial services and operational efficiency. The company has implemented a comprehensive digital strategy that includes the development of a robust Management Information System (MIS), enabling real-time data collection and analysis across its 192 branches. This system facilitates informed decision-making and effective monitoring of financial activities.
In addition to the MIS, VCCL has adopted digital financial services to streamline loan disbursement and repayment processes. By integrating cashless transactions and mobile banking solutions, the company ensures secure and efficient financial operations for its clients. These technological advancements not only improve customer experience but also strengthen VCCL's commitment to transparency and accountability in its microfinance operations.
Key Strengths Of Vedika
1. Strong Portfolio and Growth in Assets Under Management (AUM)
As of December 2024, Vedika Credit Capital reported an Assets Under Management (AUM) of INR 1,431 crore, compared to INR 1,379 crore in March 2024. This steady growth reflects the company's expanding loan portfolio and its increasing presence in the microfinance sector.
2. Increase in Non-Performing Assets (NPA)
The company's Gross Non-Performing Assets (GNPA) increased from 0.9% in March 2024 to 2.2% in December 2024. This rise was mainly due to natural calamities like floods and heatwaves, as well as elections in certain regions, which impacted borrowers' cash flow. Since most of Vedika’s customers are from semi-urban areas, their short-term liquidity was affected. Additionally, challenges faced by the microfinance industry, such as borrower over-leverage and macroeconomic factors, contributed to the increase in delinquencies.
3. Improved Debt-to-Equity Ratio
Vedika Credit Capital strengthened its financial position by reducing its debt-to-equity ratio from 4.6x in March 2024 to 3.3x in December 2024. This improvement indicates better financial management, reduced reliance on external borrowing, and a stronger capital structure.
4. Revenue and Profitability Growth
The company experienced 12.5% revenue growth, with revenue increasing from INR 227 crore in FY24 to INR 255 crore in FY25 (annualised). As of December 2024, the company reported INR 191 crore in revenue for the year. Additionally, Profit After Tax (PAT) improved to 14.1% in YTD December 2024, up from 12.3% in FY24, reflecting higher efficiency and better profitability.
With consistent financial growth, improved capital structure, and a strong portfolio, Vedika Credit Capital continues to expand its microfinance operations while addressing industry challenges effectively.
Financial Snapshot Vedika Credit Capital Limited
Source: ICRA2
Vedika also offers corporate bonds and SDIs to arrange the capital. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CARE ‘A’ rated LoanX deals of the company that offered fixed returns of up to 12.7%. To invest in similar, rated, regulated and secured fixed-income opportunities, sign-up for Grip Invest today and start earning fixed returns:
References:
- Team Vedika, accessed from: https://teamvedika.com/about-us/
- ICRA Ratings, accessed from: https://www.icra.in/Rationale/ShowRationaleReport?Id=132945
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