This Microfinance Institution Wants to Help Rural Indian Women to Fulfill their Dreams of Entrepreneurship
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Chasing a dream of having your own business is a story in itself. And a lot of rural Indian women today are dreaming to become the entrepreneurs of tomorrow. Thanks to the increasing number of Non-banking financial institutions and micro-finance companies today, which are being the pillars of strength to women in India.
Gone are the days when women used to be behind the closed doors of homes in rural regions. Today, the Indian MFIs are opening the doors of opportunity to encourage women in entrepreneurship.
Entrepreneur India’s Editor-in-chief Ritu Marya caught up with the Managing Director of India’s second largest micro-finance institutions Satin CreditCare Network Limited, HP Singh to know more about how the company is assisting rural India by providing them affordable loans.
Getting at the Bottom of the ‘Pyramid People’
To encourage entrepreneurship among rural women in India, Satin CreditCare is providing affordable loans to the women in Northern India who are keen to embark on an entrepreneurial journey.
“The idea to help women in rural regions for entrepreneurship was based on my own love for the country,” said Singh.
Satin CreditCare started its operations as an NBFC in 1986, and eventually turned itself as an NBFC-MFI in India under the guidelines of Reserve Bank of India.
The company’s DNA is based on Joint Liability (JL) for providing collateral fee, microcredit facilities to economically active women in rural and semi-urban areas. Women, who are farmers, or whose husbands are farmers can easily get access to these loans.
“We provide loans to women who are more frugal, determined to work and are enterprising,” said Singh.
“The major factor is one of the key thoughts and probably lot deliverance. It's a big encouragement to women,” he added.
The company is also helping small & medium sized business owners by providing the micro credits at 21.5 per cent interest rate who are categorically involved in infrastructure development of India. The business could diversify from solar lamps to development of water connection and sanitation facilities.
‘Huge Amount of Opportunities in Rural India’
While Satin CreditCare is known for its financing solutions and credit facilities in B2B market of India, the company has recently forayed into the housing finance business in India. With an aim to tap unorganized market in rural and semi-urban areas, the company is offering loan below Rs 10 lakh to people looking for land to build their houses.
When Singh was asked about the opportunities he sees in rural India, he said there is a huge demand in rural and semi-urban areas when it comes to credit and banking facilities. He said, “The Company does the regular survey in villages and sees what kind of economic activity is being done by the people there. We find out the past trend in terms of microfinance, once a village or place is surveyed then we setup a branch.” The company helps people in a lot of disbursement processes, and hence earns its profits in return.
Singh assertively said that the company only lend for economic activity in country.
Satin CreditCare has now close to 883 branches in northern, eastern and central India. Present across 18 states now with recent penetration into Assam and Odisha, southern states are the only geographies that remain untapped by the company.
There are no immediate plans to enter this region, Singh added.
In its latest Q4 results, the company has recorded a 41.6% YoY growth in Gross AUM to Rs. 5,756.8 Cr. Satin CreditCare also has recently tied up with Greenlight Planet to provide solar solutions in Rajasthan.
(This article has been written by Komal Nathani.)