North East Region Finservices Ltd (NEREFS) is a public limited company having Non-deposit taking Non Banking Finance Company registration. The company received its NBFC registration in April 2004 and since then, until 2006, the Company had been dealing in Business loans, Personal loans and Consumer loans. However, by 2006, NEREFS realized the potential in microfinance sector and was also guided by the Directors’ ideology of working with the lower income group and hence started core microfinance products. The Company is now determined to expand its microfinance portfolio, which will be its core product and the focus area for the future.
NEREFS has strategically chosen microfinance as its core activity and would be working mainly in the hilly states of North East, Uttaranchal and Himachal. The Directors as well as all the staff of the Company belong to the Hilly region and the Company has experience of working in mountainous regions. NEREFS therefore, would like to capitalize on its past experience and expand its operations in hills states, although its Head Office will continue to be based in New Delhi.
NEREFS has so far been closely held company and growth has been moderate mainly on account of the fact that the company worked only with its own capital since incorporation till November 2007. But in the financial year (2007-08), Company made shift in its strategy and has borrowed funds from commercial banks during December 2007 to expand rapidly mainly in microfinance sector. The company wants to make credit available to low income clients who are involved in regular business activities and in Company’s experience are more creditworthy. To enable expansion the company seeks external funds so as to gradually leverage its huge net worth.