HSBC have launched an innovative lending program in India to encourage inclusion for those who would previously have been ineligible.
Mumbai: HSBC India has announced the launch of HSBC Pragati Finance, a new loans product aimed at a largely untapped segment of customers, localising its product offering in line with its stated position as “The World’s Local Bank”.
Through this new initiative, the bank will be offering finance to a large section of consumers who have hitherto had limited access to organised lending.
Source: domain-B : Indian business : finance : HSBC India launches Pragati Finance
The new service is designed to provide loans from 10,000 rupees ($225) with limited paperwork.
The personal loan products will be offered through 46 HSBC branches in 25 cities. The product offering comprises personal loans ranging from Rs10,000 to Rs50,000 with no collateral or guarantee required and the added benefit of easy documentation, fast processing.
Thanks to Nishad for the tip.
Bankwatch 
Hmmmmm….
Have had several experiences with HSBC India, which have not made a good impression. Also the general feeling is that they are not interested in retail customers, except for what are called High Net-Worth Individuals (HNIs).
But to comment on the program at hand, there seems to be a disconnect between the target market to whom the bank is offering loans and the loan features, if this is to be considered Micro Credit.
My understanding of a micro-credit scheme is to enable individuals/ groups meet their business’ working capital or capacity enhancement needs. So the target market would be trades people, farmers etc.
From the link (http://www.in.hsbc.com/in/personal/loans/pragatifinance.htm)
The purpose for obtaining the loan as listed on the website are broadly under the Personal Loans category to meet expenses and purchase consumer goods. Doesn’t sound like micro-credit.
Further the list of documents required for non-salaried people (and as you can imagine a bulk of people requiring micro-credit are NOT salaried) include
– Tax returns, which are usually never filed by small tradespeople, tailors, farmers etc, OR
– Audited P&L account and balance sheet along with 6 months bank statements. This is equally difficult as most don’t maintain formal books of accounts in English. Those that do certainly don’t have them audited.
You are right … if that is the nature of documentation required, this would hardly be characterised as MicroCredit, in the Grameen Bank sense.