About the Pool

The transaction is backed by microfinance receivables originated by MML. The contracts in the pool have weighted average seasoning of 3.9 months, which has led to principal amortisation of 14.6% as of the pool cut-off date. The pool is diversified in terms of geography with the top 3 state and top 3 districts accounting for 64.9% and 8.2% of the pool principal respectively. The average ticket size for contracts in the pool is Rs 53,142, with a weighted average interest rate of 24.6%. All the contracts in the underlying loan pool were current as of the cut-off date (January 04, 2023).

CRISIL Ratings has adequately factored all these aspects in its rating analysis.

Counterparty details

About the Originator

MML, a part of MPG, provides microfinance loans to women. MPG started its microfinance operations in 2010 as a separate division of MFL, the flagship company of the group. In December 2011, the group acquired a Mumbai-based NBFC, Pancharatna Securities Ltd, and renamed it MML. In March 2015, MML received an NBFC-MFI licence from the RBI. As on September 30, 2023, MFL held 60.3% equity and MFL's promoters held 8.6% in MML. Along with the promoters, MML's board includes one member nominated by Creation Investments and Greater Pacific Capital and four independent directors. 

MML had AUM of Rs 10845 crore and networth of Rs 1842 crore as on September 30, 2023. Operations of the microfinance division are spread across Kerala, Tamil Nadu, Puducherry, Karnataka, Maharashtra, Gujarat, Haryana, Rajasthan, Uttarakhand, Madhya Pradesh, Uttar Pradesh, Odisha, West Bengal, Punjab, Chhattisgarh, Jharkhand, Bihar and Himachal Pradesh.

Any other information: Not Applicable

Annexure - Details of Instrument(s)

#Indicates door to door tenure. Actual tenure will depend on the level of prepayments in the pool, and exercise of the clean-up call option

^At the time of securitization, additional credit support includes Rs 56.98 crore (assuming zero prepayments) in the form of scheduled cashflow subordination for Series A1 PTCs – including Rs 25.08 crore of principal overcollateralization.

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