Microfinance Focus, Sept. 15, 2009: Kolkata-based Bandhan microfinance has raised a Rs 250-crore ($51 million) credit from the Small Industries Development Bank of India (SIDBI) to provide loans to an additional half-a-million borrowers, according to a report in The Economic Times.  The report quoted Bandhan chairman and managing director Chandra Sekhar Ghosh who confirmed it saying, “We will receive the term loan in several tranches by March 2010. We will be able to offer micro loans to five lakh additional borrowers with this fresh support from SIDBI.” The deal was struck early this month and the credit is being raised at an interest rate of 12 per cent per annum for five years, according to Mr Ghosh. Bandhan plans to use the fund to provide micro loans at an interest of 24 percent (on reducing balance basis) with a margin of 4 percent to meet the cost of operations. On a fixed rate basis, the rate will be 12.5 per cent per annum, the report said. Bandhan – meaning “togetherness” – offers microfinance services to poor women in the state of West Bengal, India. Founded by Mr. Chandra Shekhar Ghosh in November 2000, Bandhan started operations in 2002 and is registered with the Reserve Bank of India (RBI) as a non-banking finance company (NBFC). In less than eight years, it has emerged as one of the the largest microfinance institution in India and was ranked second in the world by Forbes magazine in its first ever listing of the world's top 50 microfinance institutions (MFIs). Currently, it has 1.8 million members and 850 branches spread over 12 states in India, with a loan outstanding amount of Rs. 850 crore and a cumulative loan disbursed amount of Rs. 3,000 crore. It has set a target of disbursing Rs 2,500 crore in 2009-10 and is planning to expand its footprint in Afghanistan, Brazil and South Africa. Established in 2002, Bandhan has emerged as one of the the largest microfinance institution in India in less than eught years and was ranked second in the world by Forbes magazine in its first ever listing of the world's top 50 microfinance institutions (MFIs).