Satin Creditcare Network Limited is an Indian leading Microfinance Institution (MFI) that has overtime framed a rigid business growth strategy. They a microfinance leader with a rich heritage and is active in more than 20 states across India with more expansion in South India and about 83,274 villages. The institution’s vision is to be the one-stop solution for excluded households at the bottom of the pyramid for all their financial needs.
With 1073 branches, 9832 employees, 32,00,000 clients and 6414 outstanding (Cr), Satin Creditcare maintains a concentration on semi-urban and rural areas, ensuring that their package spreads deep within those numerous areas that frequently face little or at best, modest rates of diffusion by other microfinance establishments. With a brilliant portfolio of Rs 7,182 Crores and serving more than 3.6 million clients, Satin Creditcare has been given an MFI1 grading, the top industry grading given by CARE (Credit Rating Agency).
Satin Creditcare offers a set of financial products in the Non-MFI segment (comprising of loans to MSMEs), business correspondent services, housing finance subsidiary and alike services to other financial institutions via Taraashna Financial Services Limited, a business correspondent company and a 100% subsidiary of SCNL. The company shares the vision to be a financial service powerhouse with a range of financial items developed and suited for the financially excluded community.
Coming to the investment news,
On Friday, 03 January 2020, Satin Creditcare Network announced that it fetched an external commercial borrowing (ECB) investment of $15 million (nearly Rs 107.2 Crore) from Development Bank of Austria, to fast-track its lending portfolio. As per company records, this was the third ECB funding round by a foreign institution in Satin Creditcare Network Ltd. which ultimately indicates their constant interest in the company and the microfinance sector in the Indian market. The first ECB investment in the company was undertaken by World Business Capital and the second investment was by responsibility investment. It received $9.4 million ECB funding anchored by ResonsAbility Investments AG. Satin Creditcare used the investment in further developing the assets under management of Satin Creditcare. The investment was used to manage the medium-term funding and liability mix.
This investment is the first investment undertaken by the Development Bank of Austria in the MFI sector in India under the new guidelines for ECB. Development Bank of Austria operates in developing nations and emerging markets and offers to finance for sustainable economic development.
Satin Creditcare plans to use the funding for its planned expansion, portfolio development, and desires to make an effort in progressing financial inclusion via its operations in 22 states. In April 2017, Satin Creditcare incorporated a wholly-owned housing finance subsidiary called Satin Housing Finance limited for offers loans to the cost-effective housing sector. In October 2018, Satin Creditcare stepped into the digital lending field with “Loan Dost” to mark millennials. Last year January, the company fetched a separate NBFC license (Non-Banking Financial Company) to begin its MSME business, Satin Finserv Limited.
Commenting on the investment, Sabine Gaber, Executive Board Member of Development Bank of Austria mentioned that the bank has a main strategic goal of progressing financial inclusion. The bank is proud to operate with Satin Creditcare, an experienced partner in the sector of microfinance. Since in most cases, women have very limited access to financial services, the bank is particularly happy that their investment will benefit female entrepreneurs and contribute to advancing gender inequality in India.
Further, H.P. Singh, Chairman and Managing Director of Satin Credicare, mentioned that Satin Creditcare is delighted to know that the Development Bank of Austria has strong trust in them. They have indicated that making Satin Creditcare as their first choice of investment in India. The investment from the Development Bank of Austria will benefit Satin Creditcare in strengthening their ongoing credit lending services to a larger portion of existing and potential client base and widen their reach across the Indian territory.
The partners of Satin Creditcare include Bandhan Bank, Axis Bank, Andhra Bank, Bajaj Finserv, Canara Bank, Bank of Baroda, Bank of Maharashtra, Bank of India, DCB Bank, Catholic Syrian Bank, Central Bank of India, CTBC Bank, DENA Bank, HSBC, HDFC, Federal Bank, Dhanlaxmi Bank, Doha Bank, ICICI Bank, IndusInd Bank and many more.
