MAS FINANCIAL SERVICES LTD
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
MAS Financial Services Limited (MFSL), established in 1995 and headquartered in Gujarat, India, is a non-deposit taking NBFC with a 30-year track record in retail and MSME lending. As the flagship of the MAS Group, the company provides financing directly and indirectly to Micro, Small and Medium Enterprises (MSME), along with loans for two wheelers and salaried personal loans. MFSL operates across 12 states and 1 Union Territory of India, spread across North-, South- and West regions through a network of 206 branches and 203 NBFC partnerships, serving over one million clients.
What is our funding objective?
The proposed transaction is a 5-year, USD 40 million equivalent in INR, senior, secured, listed Non-Convertible Debentures (NCD). The proceeds will be utilized to expand MFSL’s MSME loan portfolio, supporting business growth and financial inclusion initiatives.
Why do we fund this investment?
By partnering with MAS Financial Services, FMO can reach underserved rural SMEs and contribute to reducing the financing gap. 100% of the FMO’s investment is labelled as Reducing Inequalities as it supports activities that contribute to Inclusive growth contributing to SDG 10.
What is the Environmental and Social categorization rationale?
MFSL is categorized as an FI-C client, given the size and purpose of the portfolio loans. The company does not have exposure to activities on FMO’s exclusion list, IFC-PS triggered transactions or high-risk sector exposures. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
- Website customer/investment
- https://mas.co.in/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 11/10/2025
- Effective date
- 5/15/2026
- Total FMO financing
- INR 3600.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C