Reliance Capital said it is joining hands with two Gujarat-based microfinance institutions — MAS Financial Services Ltd and Vardan Trust — as part of its initiative to enhance the penetration of microfinance in the country.

The initiative was launched by group chairman Anil Ambani's wife, Tina Ambani, who handed over the first disbursement cheques.

Reliance Capital said it plans to fund MFIs in Gujarat and Maharashtra in the first phase, and subsequently have a national presence. "Our vision is to provide access to finance at the grassroots level by partnering with MFIs serving the rural and semi-urban areas. This initiative is in line with the group's commitment to play a serious role in bringing value to the lives of the underprivileged and the aged in India," Tina Ambani told reporters.

"The initiative envisages lending to MFIs, which would then be lending finances to self-help groups, individuals and joint liability groups, as per their norms," Reliance Consumer Finance deputy CEO K V Srinivasan said.

"MFIs often find raising capital a difficult proposition. This partnership will help us in optimally utilising our expertise in distribution of credit to tiny and small enterprises for income generation activities, consumption and emergency needs," MAS Financial Services director Mukesh Gandhi said.