Belstar Investment and Finance Private Limited

What Belstar Investment and Finance Private Limited does

Belstar Microfinance Limited (formerly Belstar Investment and Finance Private Limited) is a Chennai-headquartered, RBI-registered systemically important NBFC-MFI and a 67%-owned subsidiary of Muthoot Finance Limited. Founded in 1988 as an NBFC and registered with the RBI in 2001, the company was acquired in 2008 by Dr. Kalpanaa Sankar and converted into a microfinance institution serving economically disadvantaged women microentrepreneurs across rural and semi-urban India. It converted to a public limited company and listed on the Bombay Stock Exchange in 2019 under the ticker BELSTAR.

The company operates a dual lending model through a network of 1,331 branches across 19 States and Union Territories, reaching 18,98,994 active borrowers with an AUM of ₹7,841 crores as of June 2026. Its Self Help Group (SHG) loans (₹4,704 crores, 10.49L borrowers, 566 branches) provide ₹20,000-₹1,50,000 tickets through 12-step group processes, while its Pragati (JLG) loans (₹2,875 crores, 8.37L borrowers, 639 branches) extend ₹5,000-₹8,00,000 tickets to groups of 10 women founded on trust. Supplementary products include Gold Loans (₹262 crores, 12,762 borrowers, 126 branches), SME loans, education loans, and consumption/emergency/festival loans, with interest rates ranging from 10.50% to 26.00% and processing fees of nil to 2.00%. An IRDAI Corporate Agency license (CA1052) supports distribution of life and non-life insurance products. Technology stack includes tablet-based digital field applications, four-way credit bureau integration (CIBIL, CRIF, Equifax, Experian), and NPCI eNACH digital mandate collections. Operational reach is amplified by a Service Provider model enabling smaller local MFIs to leverage Belstar's infrastructure for 70,000+ additional customers.

Revenue is generated primarily through interest income on the microloan book, supplemented by insurance distribution commissions and processing fees. The company raised approximately $111M across equity rounds in 2018, 2021, and 2022 from Muthoot Finance, Maj Invest, and Affirma Capital. Operational performance has inflected sharply, with Q2 FY26 standalone net profit of ₹50.92 crore (up 2021.67% year-on-year) and operating margin of 46.53%, alongside Q3 FY26 profit of ₹51 crore. Belstar holds ISO/IEC 27001:2022, SPTF-CERISE Gold Client Protection, and SKOCH Award 2025 (Silver) recognitions, and is rated CRISIL AA/Stable and CARE AA-.

Name

Belstar Investment and Finance Private Limited

Legal name

Belstar Microfinance Limited

Website

https://belstar.in

Company type

Public

Founded year

1988

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Belstar Microfinance Limited is a Chennai-headquartered NBFC-MFI subsidiary of Muthoot Finance, providing group-based microfinance loans (SHG and Pragati/JLG), gold loans, and insurance distribution to 18.99 lakh women microentrepreneurs across 1,331 branches in 19 Indian states.

Ownership category

akta.pro rank

Product category

Microfinance Services

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Microenterprise Group Lending (Joint Liability) (FSAKAGAH)

akta.pro secondary industries

Microloans & Working Capital Loans (FSAKAGAA), SME Term Loans & Growth Capital (FSAKAGAB)

Keywords

• Microfinance lending
• Women microfinance
• Rural financial services
• Group lending
• Small ticket loans

Headquarters

HQ city

Chennai

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Microfinance Interest Income: Primary revenue from interest charged on microenterprise loans (SHG and Pragati models), SME loans, gold loans, education loans, and consumption loans. Interest rates range from 10.50% to 26.00% depending on product type.
2. Insurance Distribution Commission: As an IRDAI Corporate Agency (CA1052), Belstar earns commission from distribution of life insurance (Kotak Life, Bajaj Life, ICICI Prudential, Ageas Federal) and non-life insurance products (ICICI Lombard, SBI General, Star Health, Care Health, Galaxy).
3. Fee Income: Processing fees charged on loan disbursements, ranging from NIL to 2.00% of loan amount plus GST.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Belstar provides microfinance loans to women microentrepreneurs in rural, semi-urban and urban India through two proprietary lending models — Self Help Group (SHG) loans (₹20,000–₹1,50,000 per member, 22.60–24.80% interest) and Pragati/Joint Liability Group loans for 10-member groups founded on mutual trust. Beyond the core group-lending products, the company offers Gold Loans (₹5,000–₹8,000, 24% flat interest), SME Loans (₹50,000–₹8,00,000), Micro Enterprise Loans, Education Loans, Consumption/Emergency/Festival Loans, and cross-sells life and non-life insurance under its IRDAI Corporate Agency license (CA1052). The company also operates a Service Provider Model enabling smaller local MFIs to leverage its portfolio management infrastructure.

Product overview

Belstar Microfinance Limited is a Non-Banking Finance Company (NBFC-MFI) and subsidiary of Muthoot Finance Limited, offering a portfolio of microfinance products centered on its two lending models: Self Help Group (SHG) loans for women entrepreneurs and Pragati (JLG) loans for underserved rural women. The product suite includes Gold Loans, Micro Enterprise Loans, SME Loans, Consumption Loans, Education Loans, Emergency Loans, and Festival Loans, all designed for microentrepreneurs in remote, rural, semi-urban and urban areas. The company also operates a Service Provider Model that enables smaller local institutions to leverage its infrastructure.

Differentiator

Problem solved

Functional benefit

Brands

• PRAGATI Loans: Group microcredit lending product (renamed from JLG in 2018) for underserved rural women, launched under the aegis of Chennai Super Kings (CSK).
• SHG Model
• PRAGATI

Products and services

• SHG (Self Help Group) Loans

Quantifiable outcome

• ₹7,841 Crores AUM serving 18,98,994 active borrowers across 1,331 branches as of June 2026
• +3 more outcomes

Named customers11 records

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature4 records

Partnerships

27 partnerships are on record, tiered core and minor.

• Hand in Hand IndiacoreStrategic or Co-development PartnerCo-founder Dr. Kalpanaa Sankar co-founded Hand in Hand India. Organizations jointly aim to alleviate poverty and enhance community development. Belstar originated from taking over groups formed by Hand in Hand India. CSR activities implemented through Hand In Hand India.
• State Bank of India (SBI)coreChannel Partner/ Reseller/ DistributorKey lender partner providing credit facilities to Belstar for on-lending to microentrepreneurs.
• Canara BankcoreChannel Partner/ Reseller/ DistributorMajor lender partner supporting Belstar's microfinance operations.
• SIDBIcoreChannel Partner/ Reseller/ DistributorSmall Industries Development Bank of India - key development banking partner for microfinance lending.
• NABARDcoreChannel Partner/ Reseller/ DistributorNational Bank for Agriculture and Rural Development - partnered for SHG movement and rural finance. NABARD honoured Hand in Hand India for pioneering work in SHG movement.
• Indian BankcoreChannel Partner/ Reseller/ DistributorLender partner supporting Belstar's microfinance operations.
• Kotak Mahindra BankcoreChannel Partner/ Reseller/ DistributorLender partner for Belstar's microfinance operations.
• ICICI BankcoreChannel Partner/ Reseller/ DistributorLender partner supporting microfinance operations.
• Bank of BarodacoreChannel Partner/ Reseller/ DistributorLender partner for microfinance operations.
• Bandhan BankcoreChannel Partner/ Reseller/ DistributorLender partner in microfinance sector.
• Standard CharteredminorChannel Partner/ Reseller/ DistributorInternational bank partner providing credit facilities.
• Yes BankcoreChannel Partner/ Reseller/ DistributorLender partner for microfinance operations.
• Federal BankminorChannel Partner/ Reseller/ DistributorLender partner.
• RBL BankminorChannel Partner/ Reseller/ DistributorLender partner.
• IDFC FIRST BankminorChannel Partner/ Reseller/ DistributorLender partner.
• DBS BankminorChannel Partner/ Reseller/ DistributorInternational banking partner.
• HSBC BankminorChannel Partner/ Reseller/ DistributorInternational banking partner.
• Axis BankminorChannel Partner/ Reseller/ DistributorLender partner.
• Bajaj FinanceminorChannel Partner/ Reseller/ DistributorNon-banking finance company partner.
• Equitas Small Finance BankminorChannel Partner/ Reseller/ DistributorSmall finance banking partner.
• Kotak Life InsurancecoreChannel Partner/ Reseller/ DistributorLife insurance partner for IRDAI Corporate Agency distribution.
• ICICI Prudential Life InsurancecoreChannel Partner/ Reseller/ DistributorLife insurance partner for distribution.
• ICICI Lombard General InsurancecoreChannel Partner/ Reseller/ DistributorNon-life insurance partner for general insurance products.
• CIBIL, CRIF, Equifax, ExperiancoreTechnology or IntegrationCredit bureau partners for tracking credit history of borrowers, generating credit reports and scores to evaluate future potential and customer credit risk.
• MUFG Intime India Private Ltd.coreOthersRegistrar and Transfer Agent for shareholder services at C-101, 247 Park, L B S Marg, Vikhroli West, Mumbai-400083.
• Sundaram and Srinivasan Chartered AccountantscoreOthersStatutory auditors for financial reporting and compliance.
• Cedar Business SolutionsminorImplementation/ SI/ Consulting PartnerCall centre partner for tele-collection services.

Scale indicators12 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• CreditAccess Grameen: CreditAccess Grameen is one of India's largest NBFC-MFIs operating under a joint liability group model across rural India. Direct overlap with Belstar in microenterprise lending to women, group lending methodology, and target borrower segment, making it the closest publicly listed comparable.
• Spandana Sphoorty Financial: Spandana Sphoorty is an NBFC-MFI primarily focused on JLG lending to women microentrepreneurs across India. Highly comparable product model (joint liability groups), borrower demographic, and branch-led distribution structure overlapping directly with Belstar's Pragati and SHG books.
• Fusion Microfinance: Fusion Microfinance is an Indian NBFC-MFI operating a JLG-based group lending model focused on rural women borrowers. Direct competition in microenterprise lending product, ticket size, and borrower segment, making it a closely comparable private-market peer.
• Asirvad Microfinance: Asirvad Microfinance is an NBFC-MFI majority-owned by Manappuram Finance providing microfinance loans to women borrowers via JLG and SHG models. Highly comparable in business model and target segment, and similarly benefits from a large NBFC parent.
• Muthoot Microfin: Muthoot Microfin is another NBFC-MFI under the broader Muthoot group umbrella, providing JLG-based microfinance to women. Sibling-company parallel to Belstar with overlapping target customer base, sister group branding, and similar JLG methodology, creating potential for synergy or internal competition.
• Svatantra Microfin: Svatantra Microfin is an NBFC-MFI founded by Ananya Birla focused on lending to rural women entrepreneurs via JLG. Direct comparable in microfinance model, borrower segment, and ticket sizes, operating as a private-sector competitor.

Broad incumbents

• Bandhan Bank: Bandhan evolved from a microfinance originator into a universal small finance / commercial bank with deep microfinance roots. Comparable in serving similar low-income borrower segments with microcredit products, though broader in scope (deposits, SME, commercial banking).
• Ujjivan Small Finance Bank: Ujjivan converted from an NBFC-MFI to a Small Finance Bank, serving small-ticket borrowers and microentrepreneurs. Comparable in target segment and group/joint-liability lending heritage, though now operates as a deposit-taking bank with broader offerings.
• Equitas Small Finance Bank: Equitas Small Finance Bank serves micro and small borrowers with similar income profiles to Belstar's customers, with a portfolio mix that includes microfinance, small business loans, and vehicle finance. The bank is also a documented lender-partner to Belstar for funding.

Others

• SIDBI (Small Industries Development Bank of India): SIDBI is the primary development finance institution supporting Indian microfinance through refinancing, fund-of-funds activity, and direct lending partnerships. It is a key Belstar lending partner and ecosystem enabler for the entire NBFC-MFI sector.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/belstar-microfinance

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles20 records

Funding overview

Funding rounds3 records

Investors3 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Belstar Investment and Finance Private Limited