About the Pool

The transaction is backed by microfinance receivables originated by MML. The key pool characteristics are outlined below:

• The contracts in the pool have weighted average seasoning of 7.9 months, which has led to principal amortisation of 29.2% 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 82.3% and 15.1% of the pool principal respectively.
• The average ticket size for contracts in the pool is Rs 65,026, with a weighted average interest rate of 24.3%.
• All the contracts in the underlying loan pool were current as of the cut-off date (September 04, 2024).

Counterparty details

Transaction waterfall mechanism

Series A1 PTC holders are promised timely interest on a monthly basis and principal on ultimate basis on the maturity date of the PTCs. The collections from the pool, including the internal subordination through overcollateral as well as EIS, will be used to make promised interest payouts to PTC holders, followed by expected principal payouts as per the scheduled monthly principal collections.

However, in case of a collection shortfall, while the cash collateral can be used to make the promised interest payouts, any shortfall in expected principal collections will be carried forward as arrears. The cash collateral can be utilised to meet any outstanding principal arrears on the maturity date of the PTCs.

Any prepayments will be utilised for accelerated redemption of PTCs.

The EIS would normally flow back to the originator after meeting the promised interest payouts and expected principal payouts to PTCs.

About the Originator
MML, a part of Muthoot Pappachan Group (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 non-banking financial company (NBFC), Pancharatna Securities Ltd, and renamed it MML. In March 2015, MML received an NBFC-MFI licence from the RBI. As on March 31, 2024, MFL held 50.2% equity and MFL’s promoters held 5.3% 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 12,176 crore and networth of Rs 2,804 crore as on March 31, 2024. 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, Himachal Pradesh and Telangana.

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 securitisation, additional credit support includes Rs 41.21 crore (assuming zero prepayments) in the form of scheduled cashflow subordination for Series A1 PTCs – including Rs 20.37 crore of principal overcollateralization.

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