They are delivery riders, distributors, small and medium scale entrepreneurs and self-employed workers, whose daily effort supports and uplifts local economies.
Yet despite their contribution to the country’s economy their access to organised credit is limited and they have remained underserved by formal financial institutions.
Mahindra Ideal Finance Ltd. (MIFL), a licensed non-bank financial institution regulated by the Central Bank of Sri Lanka, is addressing this gap by offering leasing and loan products tailored for this segment of micro-entrepreneurs.
The company focuses particularly on individuals who depend on vehicles for their daily income and offer structured, repeatable financing to help improve their earning potential.
Mahindra Ideal Finance Ltd. Managing Director and CEO, Mufaddal A. Choonia said:
“We work with customers who don’t fit conventional lending profiles but are the ones who drive real economic activity.
Our goal is to offer the “earn and pay” segment of customers, financial solutions that are serviceable by their earning patterns and we do not fit them into systems that weren’t built for them.
This, we believe is the future of inclusive financial access in Sri Lanka.”
Sri Lanka’s credit gap for this customer segment and MSMEs stands at over USD 13 billion due to limited financing available to these individuals who are without payslips, fixed assets, or CRIB histories.
Many work informally and cannot meet the documentation requirements or traditional collateral conditions demanded by most financial institutions.
While they may use formal banking services, their access to formalised credit remains limited.
Furthermore, Sri Lanka has over 1 million registered three-wheelers, with approximately 800,000 used for commercial transport.
The sector supports an estimated 760,000 households and over 2.8 million people.
Data shows that 98% of three-wheeler drivers actively save through formal banks, despite operating outside traditional employment structures.
For most of these customers, leasing remains the only option to access vehicles.
MIFL’s deep understanding of this segment of customers ensures that the repayment cycles for these customers are aligned to their daily cash flows, thereby ensuring easy rental repayments.
MIFL’s financing model seeks to change this by making vehicle ownership more accessible and cost-effective.
Its emphasis on dealer partnerships and flexible credit structures allows customers to engage on terms better suited to their cashflow cycles.
In doing so, MIFL provides a path toward long-term income retention and asset ownership - both of which are critical to building economic resilience at the household level.
About MIFL
Mahindra Ideal Finance Ltd. is a Central Bank of Sri Lanka-licensed non-bank financial institution (NBFI) and a subsidiary of Mahindra & Mahindra Financial Services Ltd, India.
With a footprint of 37 branches and growing, MIFL offers a range of accessible, technology-enabled retail financial solutions tailored to the needs of individuals, small businesses and multi-brand vehicle importers.
The company is focused on supporting inclusive economic growth through practical, transparent and customer-centric lending products.
With a rating of AA- (Outlook Stable) by Fitch Ratings, Mahindra Ideal Finance is one of the highest credit-rated financial institutions in Sri Lanka.