An ADB debt facility of up to $150 million (in Indian rupee equivalent) to Janalakshmi Financial Services Private Limited will be used to finance microfinance loans and to build sanitation facilities throughout India.


Janalakshmi Financial Services (JFS)

ADB assistance

$150 million debt financing in Indian rupees

Key features

  • Founded in 2000, JFS is India’s largest nonbank finance company—microfinance institution (MFI) providing market-based financial services to underserved customers in urban India. With a diversified presence in 18 states throughout the country, and reaching over 3.8 million customers in 331 Jana centers and 50 Jana Pragati centers, JFS had over $1.7 billion in assets under management at the end of March 2016.
  • JFS will use the proceeds of ADB’s funding to finance microfinance loans, largely to women customers under the joint liability group model, as well as other small loans to individuals and to micro and small enterprises. Some 50% of the funding will go to less-developed states (as classified in the Raghuram Rajan Panel Report, 2013).
  • In addition, up to 5% of the ADB facility will be devoted to loans for building and improving sanitation facilities throughout India that complement the government’s sanitation initiatives.

ADB’s value addition

  • Improve access to finance and financial sector development by supporting JFS as it transitions from MFI lending to its new role as pan-India small-finance bank.
  • Support the development of the sanitation sector by developing and deploying sanitation loan prototypes.

Date approved

30 June 2016

This case study is originally published in Asian Development Bank Private Sector Operations, a brochure describing the work of ADB's Private Sector Operations Department, its main goal, sector focus, portfolios, and case studies on projects approved in 2016.