Background

  • In 1978, West Bengal was affected by a devastating flood, which drove a group of concerned youths to pledge help to the disadvantaged people. In 1982, Village Welfare Society (VWS) got registered as a grants-based not-for-profit organization.
  • • In 1996, VWS starts microfinance activities.
  • This led to the setting up of“Village Micro Credit Services”, a Section 25 not-for-profit company, established to undertake the microfinance activities, in 2004.
  • Village Micro Credit Services chose to work specifically on microfinance because it is recognized the world over as the ideal approach towards all-round development of society – economic, social, political and cultural.
  • The need to transform into a Non-Banking Financial Company (NBFC) was highly felt and the group finally acquired a Kolkata-based NBFC called Spencer Vinimay Pvt Ltd. The acquisition took place in January, 2006.
  • In due course of time, the NBFC was renamed Village Financial Services Limited, regulated by the RBI, for engagement in microfinance activities. The company was reclassified by the RBI as an ‘NBFC-MFI’ on 27/09/2013..
Village Financial Services Limited (VFS) is the first microfinance company in India’s eastern region with a Non Banking Financial Company status (NBFC) accorded by the Reserve Bank of India (RBI). Along with it, VFS is also the first ISO-certified microfinance company in India.

VFS started microfinance operations in the financial year 2005-2006. The microfinance programme has grown phenomenally. It has touched the lives of thousands of poor families by providing them credit for income-generating activities and helping them become economically self-sufficient, besides sensitizing women to empowerment issues and bringing about a qualitative change in them and their families in terms of standards of living and their own status in society.